House signs off on sweeping housing bill

House lawmakers Thursday approved a sweeping housing bill that includes a controversial plan to expand FHA loan guarantee programs to help as many as 2 million troubled borrowers refinance into more affordable loans.

But the 266-154 vote to approve the package of bills, dubbed the American Housing Rescue and Foreclosure Prevention Act, fell short of the margin that would be needed to override President Bush's threat to veto the bill.

The Bush administration opposes the expansion of Federal Housing Administration loan guarantees put forward in March by Rep. Barney Frank, D-Mass., as a "bailout" of lenders and speculators.

Frank has maintained that the program would not constitute a bailout because it would mostly be financed by insurance premiums borrowers pay to the FHA, and only owner-occupied homes would be eligible for government-backed refinance loans.

In addition, lenders would have to accept a maximum 85 percent of a property's current appraised value as payment on an existing loan to participate, and borrowers would have to pay the government an exit fee to prevent them from flipping their home at a profit if housing prices rebound.

Backers of the FHA expansion plan sought to win bipartisan support by wrapping compromises on other issues Congress has been deadlocked on for years into the bill.

Those issues include so-called FHA modernization legislation sought by the Bush administration permitting the FHA to expand the use of risk-based pricing. Risk-based pricing would allow borrowers who might not have qualified for an FHA loan before to get one, although they would pay higher premiums.

The House incorporated the language of a previously approved FHA modernization bill into the Act, HR 1852, which would increase the maximum amount for loans eligible for FHA backing in high-cost areas to up to 175 percent of the $417,000 conforming loan limit, or 125 percent of an area's median home price, whichever is less.

The legislation passed by the House Thursday would also provide for strengthened oversight of Fannie Mae and Freddie Mac, which was sought by the Bush administration as a prerequisite for permanent increase in the $417,000 conforming loan limit for mortgages eligible for purchase and guarantee by the government-sponsored enterprises, or GSEs.

A temporary increase in the conforming loan limit -- up to $729,750 in high cost areas -- is scheduled to expire at the end of the year. Some Democrats are pushing for a permanent increase in the conforming loan limit, but the legislation approved by the House Thursday incorporates the language of a previously approved GSE reform bill, HR 1427, which would limit Fannie and Freddie to securitizing mortgages of up to $625,500.

The House also threw in a first-time home-buyer tax credit of up to $7,500 for individuals who earn less than $70,000 a year, or up to $140,000 for married couples, that's supported by the industry.

"The tax credit is the most effective way to halt the downward spiral in the housing market and stabilize home prices and financial markets," said NAHB President Sandy Dunn, president of the National Association of Home Builders, in a statement. "This will get consumers off the fence, stimulate home buying and reduce excess supply in housing markets."

The House bill -- technically an amendment to The Foreclosure Prevention Act of 2008, a tax relief bill passed by the Senate April 10 -- also includes language that's intended to protect loan servicers who engage in workouts with troubled borrowers from lawsuits by investors in mortgage-backed securities. The Senate's bill was, in turn, an amendment to a bill originally put forward in the House, HR 3221.

Differences in the House and Senate legislation must eventually be worked out in a conference committee, with President Bush's threatened veto expected to be used as a negotiating tool.

The Mortgage Bankers Association was among industry groups welcoming aspects of the House bill Thursday.

FHA modernization has "long been one of MBA's top legislative priorities," the group said, and the new, independent regulator the bill would create for Fannie and Freddie "is crucial given the current state of the market," MBA Chairman Kieran P. Quinn said in a statement.

Quinn said the proposed expansion of FHA loan guarantee programs "has the potential to help a significant number of borrowers avoid foreclosure" but must include "appropriate safeguards" to help those borrowers most deserving while keeping the program voluntary for lenders.

While Frank has said the plan could help as many as 2 million troubled borrowers stay in their homes, the Congressional Budget Office estimates that limited participation by lenders could keep the actual number of refinances closer to 500,000 loans, with program losses of about $2.7 billion.

In another 239-188 vote, the House passed a separate bill, HR 5818, The Neighborhood Stabilization Act, which authorizes $15 billion in federal grants and loans for state and local governments to purchase, rehabilitate, and resell or rent foreclosed homes.

One of the main reasons people want to move is to get more room. If this applies to you, you will want to make your home seem bigger, for your own use and so it will be easier to put on the market. Here are a number of inexpensive tips that you can use to make your home seem larger. This can be to your advantage when you are selling a smaller house.

1. Lighting -- Especially in a small home, the lighting is surprisingly important. The impression of openness is assisted by bright lighting, because of our lifelong conditioning to think of bright sunny spaces as being connected with outdoor living. Aim lights on the walls so they will appear to be brighter. You might want to have controls to dim or increase the intensity of the lights in each room to fit your mood.

2. Colors -- Choose colors that give a warm feeling such as red, yellow, brown and orange. These colors can make a room seem larger and more open. To give a particular room added depth, you might want to try the approach of using light colors on three walls of the room and a coordinated darker color on the fourth wall.

3. Minimum Furniture -- Any rooms in the house that have too much furniture will look smaller. The more crowded a room is, the smaller it will seem. Make sure that your furniture is not crowded together when you want to make a room look larger. Avoid placing bulky armchairs and sofas in small spaces. To maximize the utilization of space, try to use dual purpose furniture. An example would be an end table with an integral magazine rack takes up less room than two specialized pieces.

4. Be Mindful of Your Choices in Decorator Items Too -- The accessories you use in decorating have an impact on how large or small it appears. Use light colored curtains, which allow the light to come in during the daytime. Choose light colored furniture, or at least as a minimum use light colored covers for the furniture, since using light colors will usually give a more relaxed feel to the room.

5. Storage Plan -- Efficient storage is an important consideration in small spaces. The more clutter you have in your home, the smaller it will look. This is not just something for making your home more attractive to buyers, but a good aspect of having a control of your own life too. Come up with storage systems that fit your family's needs and lifestyle. When you clean up the clutter, your house will seem more appealing to guests and homebuyers.

6. Mirrors Can Be a Space Doubler -- Use wall and door mirrors in carefully planned locations to give depth to a room. This is one of the most direct real estate tips ever. Mirrors can serve as attractive in and of themselves, and they serve a secondary purpose of making small rooms seem large.

These suggestions are among the most effective ways to improve the value of your home, even compared with much more costly choices.  Wit their high ratio of benefit to expenditure, if you try them first you might not even need to go to the high-priced work you might have otherwise considered.

Content presented by the Colorado home specialists at Automated Homefinder.

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.

***

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.

DO FORGET ABOUT NEXT LEVEL'S "BMW CHALLENGE" WHEN YOU JUMP INTO THE MARKET TO BUY OR SELL click here for more info

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.

For Tech-Savvy Consumers, Real Estate Agents are Still the Experts

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Commentary by Lloyd Frink

RISMEDIA, Feb. 18, 2008-Despite the number of websites that now offer consumers never-ending information, traditionally only available through agents, most consumers still-and should-prefer to bring in a professional if they’re serious about transacting. Buying and selling real estate are complicated processes, and most consumers prefer to have the wisdom and guidance of a professional. The advance of information online allows consumers to better understand the process and have more meaningful and productive conversations with their agents.

Consumers have an incredible hunger for knowledge, and many of the real estate sites that have launched in recent years aim to satisfy that hunger.

It’s also important to point out that consumers who use the Internet as a significant portion of their home-buying experience tend to spend less time looking at homes with their agents when they’ve been able to gather research online first-perhaps because they have a better grasp on local market conditions and a more clear idea of what they want and can afford.

A recent study by the California Association of Realtors reported that home buyers who used the Internet as a significant portion of their home-buying experience spent an average of two weeks with a Realtor looking at homes, compared to those who did not use the Internet, who spent an average of seven weeks looking for their home. The wealth of tools and information available online takes away a lot of the “hand holding” traditionally expected of real estate agents, which allows them to take on a higher volume of clients, and ultimately, make more money.

In addition, many online real estate sites-such as Zillow.com-offer ways for real estate professionals to market themselves to their consumers, many of whom are a ripe audience for real estate agents. Zillow.com, for example, attracts approximately 4 million users per month, 90% of whom own a home and two-thirds of whom are actively buying or selling-or plan to soon.

What’s more, Zillow allows agents to post their listings for free, complete with contact information and links to their website. Because Zillow includes information on all homes-not just those currently on the market-agents and brokers can also sign up for a unique “Virtual Sold Sign” program, which allows the broker’s logo and the agent’s contact information to become a permanent part of that home’s history. This provides free marketing exposure to the agent and brokerage long after the home has sold.

Lloyd Frink is the president of Zillow.com.

RISMEDIA, Feb. 13, 2008-(MCT)-Valentine’s Day is a time for roses, chocolate and sparkly dinners. But if you want to ensure your relationship with your partner endures through less-romantic times, be sure to talk about finances. Being on the same page about all of your financial data is a long-lasting way to show each other your commitment.

To help you broach the subject of finances and make sure they are in alignment, consider these tips from Marvin Feldman, president and CEO of the nonprofit Life and Health Insurance Foundation for Education (LIFE):

- Have ‘the talk.’ If you haven’t done so yet, tell each other where your key financial information (checking, savings and investment accounts, mortgages, and insurance policies), as well as valuables (birth and marriage certificates, jewelry, safe deposit key) are located. It’s important to understand each other’s financial dreams and plans, as well as final wishes, so that you know exactly what to do in an unforeseen situation.

- Boost your life insurance. This is of paramount importance if you have dependents. According to the Life Insurance Marketing and Research Association, today’s average married couple has less than half the amount of life insurance coverage experts recommend. For husbands, it’s barely enough to replace their income for 4.2 years, and for wives 4.9 years.

- Evaluate disability insurance needs. According to LIFE research, 70% of working adults say they could only afford to take off one month or less of unpaid vacation before everyday expenses would force them to return to work. Yet, nearly one out of every three workers over the age of 30 will suffer a disability lasting at least three months at some point in their career. To ensure that financial strain doesn’t fall on your household and figure out how much disability insurance you need, visit www.lifehappens.org/disabilitycalculator.

- Where there’s a will, there’s a way. If you are married, now is as good a time as any other to put in place a will that names executors, guardians and trustees. This is especially relevant if you have small children, to ensure their well-being in the rare event that something happens to both you and your spouse. When choosing a guardian for your kids, don’t hesitate to look outside the family; it is more important to find someone with values similar to yours rather than entrusting an aunt or an uncle you’re not comfortable with.

- Meld your financial responsibilities. While your chemistry may be great in the beginning of a relationship, make sure it lasts by determining upfront your spending and saving habits, whether you want a joint checking account, and whose responsibility it is to handle the bills.

- Rest in peace. This is always a tough topic, but discussing your final wishes and arrangements will ensure neither of you will be burdened with those decisions later on. Write down and tell your spouse, as well as other family members, where you want to be buried, funeral arrangements and even whether or not you wish to be an organ donor.

© 2008, MarketWatch.com Inc.
Distributed by McClatchy-Tribune Information Services.

By Beth McGuire

RISMEDIA, Feb. 8, 2008–”It’s a good time to buy real estate.” That’s the message Realogy, the nation’s 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 Realogy’s 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 Sotheby’s 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 Can’t 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 today’s 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 today’s 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 can’t 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 don’t know if it will help because you can’t 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 shouldn’t 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.

“It’s too early to know how it will go,” he said. ‘We’ll see what the impact of the rate cut brings. Another wild card is [President Bush’s 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.”

For more information, visit www.realogy.com.

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