As a home ages it
becomes unique from it's
neighbors'. This is
especially true of the 50+
year vintage home.
Analyzing it's true market
value takes a Specialist.
Now YOU know one!
Kathryn Hisert
In the News
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What is Foreclosure?
Foreclosure is the legal process
of selling property to satisfy a
defaulting borrower’s debt
secured by that property. Most
foreclosures in California are
private trustee’s sales, rather
than judicial foreclosures. A
trustee’s sale is a public auction
for selling property to the highest
bidder—a quick and cost-
effective process for the lender.

However, if the foreclosure sales
price is not enough to pay off the
loan being foreclosed upon, the
foreclosing lender cannot recover
that shortage (also known as a
deficiency judgment) from the
borrower.

What is a Short Sale?
A short sale is a sales
transaction in which the seller’s
mortgage lender agrees to
accept a payoff of less than the
balance due on the loan. A short
sale may or may not involve a
property in foreclosure.

Properties are more likely to
become short sales when the
market is soft and the rate of
home price appreciation islow.
However, the loan is generally
the main instigator for a short
sale. The loan in a short sale is
often subprime, highly leveraged,
negatively amortizing, includes a
prepayment
penalty, or all of the above.

What is a Subprime
Loan? (Answer from
Bankrate.com)
There are conflicting accounts of
the size of the subprime market.
Depending on whom you talk to,
it accounts for 20 percent of all
mortgage loans, 15 percent or
13.5 percent.

Estimating the size of the
subprime market is tricky for a
number of reasons. For one, it's
sometimes hard to distinguish
between a subprime mortgage
and an Alt-A loan -- a grade of
mortgage between prime and
subprime. For another, there are
two ways to count them: by the
number of loans or by total dollar
value. Then there's the question
of whether you're talking about all
loans originated in a certain year
or all outstanding mortgages.

Standard & Poors says subprime
originations totaled $421 billion
in 2006. The Mortgage Bankers
Association says all originations
totaled $2.5 trillion. If both data
sources are accurate, that
means 16.8 percent of mortgage
volume consisted of subprime
loans last year.

That's dollar volume, not the
number of mortgages. Subprime
mortgage balances are probably
smaller than average, so more
than 16.8 percent of borrowers
got subprime loans.

These statistics rely on lenders
to define what they mean by
subprime, and different lenders
have different definitions. As a
rule of thumb, a subprime
mortgage is a home loan to
someone with a credit score
below 620. But some lenders
count loans as subprime even if
the borrowers have credit scores
of 660 or higher, if the borrower
makes a down payment of less
than 5 percent or does not
document income or assets.
Other lenders might count those
loans as Alt-A.

There isn't a definition of
subprime that everyone agrees
on. That's partly what makes it
difficult to judge the size of the
subprime market.

California Capital Gains Taxes:

In most real estate transactions, escrow companies were previously required to withhold 3 1/3 percent of
the sales price. Common exceptions to this requirement include transactions involving a principal residence
and 1031 exchanges. Beginning this year, non-exempt sellers can now choose to have escrow withhold a
sum of money equal to the maximum California personal or corporate tax rate multiplied by the anticipated
recognized gain on the transferred property instead of 3 1/3 percent of the sales price. This means that even
if the seller is not exempt from withholding, the seller can choose to have escrow withhold the actual
California capital gains tax owed, rather than an arbitrary 3 1/3 percent of the sales price.

Eviction Notice:

60-Day Notice to Terminate Lease: Starting this year, residential landlords are required to give any
month-to-month tenant a 60-day eviction notice if that tenant has lived on the property for more than one year.
However, a 30-day notice to terminate is allowed if the tenant has lived on the property for less than one year
or when all of the following conditions are present: the dwelling is a single-family home; an escrow has
been established with a bona fi de buyer who is a natural person and intends to use the property as a
principal residence for at least one year; the notice is given within 120 days after escrow is opened; and the
tenant did not previously receive a notice to terminate from the landlord. The 60-day notice does not apply to
fixed-term (e.g., one-year) leases.
NewVintageHome  Where Life Begins...

2007 Energy Tax Incentives

Bernanke -- Fed on alert given risks of both slower growth and higher inflation
By Greg Robb, MarketWatch      

WASHINGTON (MarketWatch) -- Core inflation should edge down a bit over the next year and a half, as
inflation expectations remain contained, energy prices flatten out and pressures from the labor and product
market diminish, Federal Reserve board chairman Ben Bernanke said Wednesday.
"Core inflation should edge a bit lower, on net, over the remainder of this year and next year," Bernanke said
in prepared testimony to the House Financial Services Committee.

"If energy prices level off as currently anticipated, overall inflation should slow to a pace close to that of core
inflation in coming quarters," Bernanke said.

On growth, the Fed chairman said the economy should expand at a "moderate pace" over the second half of
2007, and "strengthen a bit" next year.

Bernanke said the central bank remains on alert that this soft-landing scenario will not pan out. He stressed
that there are risks in both directions -- of slower growth from the ongoing housing correction and of higher
inflation from a possible sharp rise in energy and commodity prices.
Bernanke did not ignore headline inflation in his testimony, but said that core inflation, which strips away
volatile food and energy prices, "may be a better gauge than overall inflation of underlying inflation trends."

His remarks suggest vigilance but not panic on the outlook.

"There is nothing in the prepared testimony designed to shake market expectations of little if any change to
Fed policy over the medium term," said Josh Shapiro, chief U.S. economist at MFR Inc., in a note to clients.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, said Bernanke's testimony "is little
more than an expansion of the views set out in recent FOMC statements; there is no signal of any change in
the Fed's core views."

The release of his written remarks had little impact on the stock market. Read Market Snapshot.
Treasury prices rose, sending yields lower, as investors cheered Bernanke's comments that core inflation
should edge down. Read Bond Report.

The dollar dropped as the prospects for any rate hike receeded. Read Currency report.
Bernanke's "prepared comments [were] less hawkish than the market was anticipating," said Kathy Lien,
chief strategist at DailyFX.com.

Bernanke said that the headline price index for personal consumption expenditures inflation rate is at 4.4%
annual rate over the first five months of the year. This pace, if maintained "would clearly be inconsistent with
the objective of price stability."

Recent readings on core inflation "have been favorable," he said, but there is considerable noise in the data
and some of the improvement "could also be the result of transitory influences."
Bernanke's comments fit squarely in the most recent Fed policy statement that "a sustained moderation in
inflation pressures" has yet to be "convincingly demonstrated." The Fed has kept the federal funds target rate
at 5.25% for more than a year.

Bernanke warned that the Fed is watching inflation expectations closely.

"If inflation were to move higher for an extended period and that increase became embedded in longer-term
inflation expectations, the re-establishment of price stability would become more difficult and costly to
achieve," he said.

"With the level of resource utilization relatively high and with a sustained moderation in inflation pressures
yet to be convincingly demonstrated, the FOMC has consistently stated that upside risks are its predominant
policy concern," he said.

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Real estate market news PLUS tips on home buying, selling, taxes and maintenance...Click here!
Getting the most for your money
Five valuable tax perks you don't want to miss when you file 2007 taxes
By Andrea Coombes, MarketWatch

SAN FRANCISCO (MarketWatch) -- Whether you use a professional tax-return preparer, a software package or struggle yourself with paper and
pencil, it pays to take note of the most valuable tax credits and deductions.

In big-picture terms, personal exemptions offer the biggest value, worth $842 billion in total dollars claimed on 2005 returns, according to the
IRS. While it's unlikely taxpayers miss out on their rightful exemptions, there are plenty of other tax perks they do often miss.

1. Educate yourself
Any education expenses you paid in 2007 might result in one or more tax perks, including the Hope credit, Lifetime Learning credit and tuition
deduction, if you fall within the income guidelines.
Yet about one-fourth of eligible taxpayers neglected to take the Hope or Lifetime Learning credit available to them, according to a review of
about 1.4 million tax returns by the U.S. Government Accountability Office in a report dated July 2005. The money lost as a result was relatively
small, about $169 on average. But 10% of those filers paid $500 more than necessary in taxes, according to the GAO.

The Hope credit, worth up to $1,650, applies to tuition and related fees (books and supplies and room and board are not covered) incurred
during the first two years of higher education. The Lifetime Learning credit is worth up to $2,000 of qualified expenses, for any year of higher
education.
Both credits start phasing out for filers with modified adjusted gross income of $47,000 ($94,000 for married-filing-jointly), and both credits
drop to zero for those with a MAGI of $57,000 ($114,000 for married-filing-jointly).

You don't have to itemize to take the above-the-line tuition and fees deduction, worth up to $4,000, but your modified adjusted gross income
must be no more than $65,000 for single filers ($130,000 for married-filing-jointly). Then, the deduction drops to $2,000 for single filers with
MAGI from $65,000
to $80,000 ($130,000 to $160,000 for married-filing-jointly), after which it disappears entirely.

You can't take the deduction if you take one of the credits. Generally, a credit is more valuable than a deduction, but given phase-outs and other
considerations, taxpayers with higher-education expenses should run the numbers to see which tax perk yields the most savings.

2. Standard deduction or itemize?
One of the highest-value tax decisions is whether to itemize or to take the standard deduction, which for 2007 returns is $10,700 for
married-filing-jointly filers, $7,850 for head-of-household filers, and $5,350 for single filers.

In 2002, the GAO, Congress's investigative arm, found that taxpayers who could have itemized but didn't sacrificed $945 million, or about $438
per taxpayer on average. About one-third of taxpayers itemize each year.

"People sometimes won't itemize," because of the extra work involved, said Bob Scharin, a New York-based senior tax analyst with RIA, of
Thomson Tax & Accounting. "They have to go and search for things [and] they wait to the last minute, and then they say 'I wanted to get to bed
tonight,'" he said. Taxpayers "should get these numbers together before they go on the computer."

Homeowners can relatively easily judge whether itemizing is worth it: Add up what you paid for mortgage interest, real estate taxes and state
and local income taxes, and compare against the standard deduction. If you're 65 or older, note that there's an additional amount to add on to
your standard deduction: $1,050 for married filers and $1,300 for single filers.

Even renters might have reasons to itemize. "That renter might have trustee fees, might have fees for investment advice, might have
extraordinary medical bills" all of which are deductible expenses, said Grace Allison, tax strategist with Northern Trust in Chicago.

Others agreed. "If you're renting it doesn't preclude you from itemizing, it just affects the types of deductions you have," said Greg Rosica, tax
partner with Ernst & Young. "You could have sales taxes or state income taxes, charitable contributions, or investment expenses that you might
be able to use."
For instance, itemizers can choose to deduct state sales taxes in 2007 in lieu of state income taxes. That's a valuable perk for residents in
states such as Florida and Texas, which have no income tax, and for taxpayers in other states who pay low income taxes.

3. Get credit where credit's due
Since they provide a dollar-for-dollar reduction of your tax bill, credits are generally more valuable than deductions. In addition to the education
credits, consider the child tax credit, worth $1,000 for each child up to age 17, if you qualify.

Also, parents should assess whether they can take the credit for dependent and child care expenses, including day-care and summer
day-camp costs (but not sleepover camp) -- a perk that can reduce your tax bill by as much as $2,100.


Investors shouldn't forget the credit for foreign taxes paid. If you're invested in an international mutual fund, check your mutual fund statements
for information on foreign taxes paid.

And retirement savers: Don't forget the saver's credit, capped at $1,000, aimed at encouraging retirement saving among lower-income
taxpayers.

4. Big benefit for business owners
Business owners who bought equipment such as computers, trucks, or furniture (with some limitations), don't want to miss out on the Section
179 expense election, worth up to $125,000 in 2007. "It's probably the most valuable extra deduction there is," said Ted Lanzaro, managing
partner with Shelton, Conn.-based Lanzaro CPA, and "you don't necessarily have to lay out the money to do it." A contractor might decide to buy
two new trucks, financing most of the cost. "In essence I've used Ford Motor Credit to give me a $60,000 deduction without me spending the
$60,000," he said.

Another benefit: The deduction can be used to reduce a spouse's taxable income. "Let's say I'm the contractor and my wife has a W-2 job
somewhere. My section 179 depreciation, even though I've taken it to zero, I can use it to offset her W-2 income," Lanzaro said.

"Especially with people starting businesses, they start a business, they're not making so much money but it's a capital-intensive business,
we'll take the Section 179 and zap their spouse's income almost down to zero for it. It's a very, very good strategy," he said.

5. Charitable donations
Taxpayers can deduct up to 50% of adjusted gross income for their charitable efforts, but plenty of taxpayers fail to enjoy the full benefits of this
deduction, Lanzaro said.

"Many people come back to me later and say, 'Oh, I forgot I gave that big box of clothes to Goodwill,'" he said. Before sitting down to do your
2007 taxes, gather all receipts and look through your checkbook to ascertain all of your charitable giving.

Taxpayers enjoyed about $172 billion worth of charitable-contribution deductions in 2005, according to the IRS. And this deduction comes in
as the fourth most valuable among taxpayers who itemize, according to an analysis by CCH, said Mark Luscombe, a principal analyst with
CCH Inc., a Riverwoods, Ill., tax publisher.
For 2007 the rules got a bit tighter. Before, taxpayers needed a bank record or written receipt from the recipient for cash donations of $250 or
more, but now that proof is required for cash donations of any amount.

If you donated used items, such as furniture or clothes, those items must be in "good" or better condition, according to the IRS. "If you've given
away useful clothing, then typically you can list the item at its original cost when you bought it and you can take 25% of the original cost and
deem that to be the thrift shop value and that's the deduction you can take," said Leo Bruette, a tax partner with BDO Seidman, Bethesda, Md.

Plan ahead
Some of the most valuable tax perks require some planning ahead. While you're thinking about tax savings, consider that one of the best ways
to reduce your taxable income is to put more money into a 401(k) or individual retirement account.

Another valuable tax perks is the annual gift tax exclusion, said Michael Eisenberg, personal financial specialist and founder of Eisenberg
Financial Advisors in Los Angeles.

"Any one person can make a gift to any other person for up to $12,000, the person receiving it doesn't have to pay any income tax on it,"
Eisenberg said. "We are in an economic slowdown at this point. If a parent wants to help out a kid or a grandparent wants to help a grandkid,
these tax-free gifts are a tremendous help."   If you keep the gift below $12,000, there is no need to report the gift or to file a gift tax return.

Note:  Always consult your tax advisor to ensure any or all of these tips apply to you.
(Scroll down for multiple articles...)

Four cheap and easy home improvements
By Marshall Loeb, MarketWatch

NEW YORK (MarketWatch) -- If your house sorely needs a makeover, but remodeling is beyond your reach,
the DIY Network's Amy Devers, host of "DIY to the Rescue," suggests trying these four simple fixes:

•        Touch-up exteriors. Repainting the trim and front door of your house can significantly boost its curb
appeal, Devers said. This kind of retouching work is easy on the budget and can be done in just a couple of
hours.

•        Replace your floors. The widespread availability of affordable "floating floors" (flooring options that can
be installed on top of existing boards or linoleum) makes updating the floors in your rec room or pantry a
cinch. "You'll probably save a minimum $500 to $600 dollars by doing it yourself," Devers said.

•        Update your hardware. Switching out old light fixtures and faucets is a simple, affordable way to
modernize your home. While you're at it, equip your house with fixtures that support halogen light bulbs to
save money on your electricity bill.

•        Transform your yard. Landscaping doesn't have to break the bank. Replacing overgrown shrubs and
bushes and adding some flowers for color is an economical way to add value to your home.

Many home repairs can be easily mastered by determined do-it-yourselfers, Devers said, but there are still
some things best left to the experts. If you need to re-floor your entire house, contact a flooring service, and
call in the electricians whenever you're dealing with circuit boards or wiring in the walls

Oversized Garages –
the New BIG THING!

National Association of Realtor’
s 2007 Profile of Buyers’ Home
Feature Preferences reveals
what buyers really want and
how much they'd pay to get it.
While central air conditioning,
master bedrooms on the main
level, walk-in closets and
hardwood floors remain
important to home buyers, over-
sized garages are the new big
thing. While just 6 percent of
buyers said they’d pay more for
an over-sized garage in the
2004 survey, this figure
jumped up to 56 percent in
2007.

How to make your home stand out
You can help your house sell quickly and at a good price -- even in a slow market -- by following these suggestions from readers.

By MSN Real Estate staff

(Note from Kathryn: I am fortunate to not only be a Realtor and a Loan Agent, but also an Accredited Staging Professional. Please know I do
not agree with all of these opinions. However, most have merit and are well worth considering – by both Buyers and Sellers!)

It takes a lot more than sparkling windows, scented candles and chocolate-chip cookies to sell a home in today's market.
But those are among the take-home tips for home sellers from the folks who replied to an MSN Real Estate message board request for
advice on making a house stand out.

Readers' No. 1 suggestion, expressed in many variations: Clean every square inch of your property and keep it clean until closing. More than
200 respondents started at the curb and didn't stop until the back fence as they posted suggestions to help attract buyers. Here are some of
the best reader comments. (Editor's note: Posts have been edited for grammar and spelling.)

Online appeal
"The loveliest home doesn't have a chance with the poor photography I see in a huge portion of Internet listings, which are the first impression
of your home for many buyers.  With so many listings posted in some areas, trying to make out details in dark, blurry photos when there are a
lot of other listings to look at could have a very negative effect.  I always think that if I were trying to sell in this market, I'd be furious with my
Realtor if I had a stylish, attractive home represented by a fuzzy, dark rectangle!" -- suefrog

"We just learned from our buyer's agent that one outside shot of the home is usually Realtor code for a foreclosure or corporate-owned
house." -- Buying and Selling

"Another thing in a listing that can sometimes make people shy away from even looking at your home is pets in the pictures or notes about
pets on the listing.  My sister-in-law is VERY allergic to cats and cigarette smoke.  When they move, it is always to a new house so they know
there have been no previous owners to leave any lingering odors or allergens." -- AZ Native

"If it's in your budget, get a small Web site just for your house address. I give all my clients one for free  -- e.g., 123mainst.com. This enables
you to put a ton more photos on your Web site, disclosure statements, (and) up-sell your house!" -- Real Estate Diva

First impressions
"'Curb appeal' literally begins and starts with the curb! How clean and presentable is your curb? Does it need to have sand, dirt or pebbles
swept clean?  Does it need to have leaves, cigarette butts or other debris cleaned up? Are there weeds or grass growing in the cracks and
crevices of your curbs and sidewalks? Concrete curbs (sidewalks, driveways, etc.) that are badly cracked or broken should be replaced.  You'll
be amazed at how other things in your yard start taking on a much more attractive look." -- Curb Appeal

"If the house is small, remember if you plant your bushes and trees at the corners of the exterior the house appears much larger." -- B. Glass
"Wash down the exterior of your house. You don't necessarily need to rent a power washer.  A hose and broom and some dishwashing
cleanser work great. ... Look for cobwebs and hornets nests weekly. Beg, borrow or steal a lawn edger if you don't use one regularly. Trim
back all grass at every edge, including the street. Sweep the street gutters! You may have to do the neighbors on both sides, too (I did), to
make sure your section of the street looks really tidy and well-kept." -- wecanhope  

"Curb appeal is huge, especially in the winter when sidewalks are icy and snow-covered. If you take time to shovel and salt your sidewalks,
the home looks like it's been taken care of even when the buyers can't see the lawn under the foot of snow covering it. In the spring and
summer, lawn ornaments are a no-no, and a quick driveway resealing is inexpensive and works wonders for the drive-by appearance of your
house." -- Waddle

"Being a real-estate agent myself, I come across many things that help sell a home. The most obvious is landscaping. Good landscaping
makes a home look 100% better. Even if it's just some shrub and tree/shrub trimming along with some fresh mulch, do something to spruce
up the outside appearance." -- Realtor61

Keep it clean
"Clean: Believe it or not, this can make your home more valuable. Either do it yourself or hire a cleaning service to come in and deep-clean
your house. Nobody buys a dirty shirt. Why would they buy a dirty house?" -- mpharnish

"When we found out we were going to move, I followed the best advice given to us:  Make your house look like a very comfortable, expensive
hotel room -- clean, uncluttered and not like anyone else has ever been there. We rented a storage unit and moved close to 75% of our
belongings into it, including everything in the attics, and cleared out the closets to only those clothes we would need in two weeks. We sold in
one day, $5,000 above our asking price. ... However, it took a lot of work. I literally cleaned the tracks of the windows with Q-tips -- total
craziness!" -- anlatima

"Make sure the areas around your furnace and hot-water heater are clean, neat and spacious. The components themselves should not be
covered with dust, cobwebs, rust spots, etc. Even if they're old, they should look shiny and well-maintained. Change the filters often to help
with dusty smells. … Take everything out of the garage, vacuum all floors, walls and ceilings, then paint it bright white. If there are shelves and
brackets, paint them bright white too. Then bring back only a little of what once dwelled there." -- wecanhope

"The average time on the market in our Ohio city is now over six months! We listed and sold our home in three months with very little
investment. We packed the things we didn't need in our daily lives. Gone were the kitchen appliances that get used once every other month,
gone were the pictures/frames/art items, gone were the books, video games (we weren't currently addicted to) and other junk. Not only did we
get a sale much quicker than our neighbors, but we got asking price -- just by getting a head start on the packing we were going to have to do
anyway! -- MajicJewel

"Consider the following distractions I saw at my neighbors' house when they had it 'show ready': dirty bars of soap at the sinks, an empty
plastic dish rack obscuring a nice almond-colored kitchen sink, unfolded and mismatched towels on the towel racks, several dirty windows, a
bleach-stained pillow sham in the master bedroom, food-stained potholders near a lovely, new stove, faded lawn furniture cluttering a rather
small backyard, and bulky furniture lined up military style against the wall of the family room. Really think out of the box when it comes to clutter
and cleanliness; every wine-stained tablecloth and bunched-up throw rug chips away at the positive image you'd want to project in your
home." -- beebeebooks

"An old kitchen can be a killer to even the nicest home. If your appliances are more than 10 years old, replace them. Upgrade laminate
countertops to Corian, granite or something comparable. Dark wood cabinets could be painted white. Cheap cabinets could be refaced, if
replacing is not within your budget. New hardware is an inexpensive and effective way to improve cabinet appearance. Replace vinyl tile with
ceramic, Pergo or wood.  Improve the lighting to make the kitchen as bright as possible. Clear the countertops as much as you can. Don't just
clean the drip bowls on your stove, replace them. Every penny you put into a kitchen will be worth it in the end." -- Maryland Realtor

"Whenever it was time to sell my house, my husband said 'Better Homes & Garden' it.  We even washed the light bulbs off and (polished)
every bit of wood cabinetry and molding. I borrowed a good friend's bookcase to finish off a living room; I stored boxes and boxes of our things
at my brothers’; and when there was a showing, put our dirty laundry in the car and drove it down the road.  We even took the dog's dish and
food (and the dog) to the neighbors." -- midwestrealtor

The great color debate
"Certainly you can decorate your house however you like, but once you are selling, you have to keep in mind what buyers are looking for.  If you
want to know what they like, go look at popular model homes in the area that are selling hot. However they are decorated should be how you
do it.  No pink bathrooms or green walls.  Paint it all a soft white!" -- jchandjd

"As far as colors go, it's good to have some color in your home. Buyers like to see that you've cared enough about your home to do that
arduous sponge painting. However, don't use colors that look like they'll take three coats of primer and three coats of paint to cover up. Don't
make every room a different pastel color.  Don't use more than two colors in a single room. Don't use any dark colors, as they make a room
look smaller."  -- Maryland Realtor

"I agree that garish or designer color schemes don't sell well. On the opposite end, stark white walls make a house look cold and unfinished.
Painting walls a warm cream or taupe, with white trim, makes rooms more inviting but is still neutral enough for most buyers. … If your
furniture is shabby or mismatched, consider putting it into storage and renting some new furniture, rugs and silk plants just until the house
sells. Visit some of the model homes at new developments for ideas. Their decorators know what makes a home look attractive and classy."  
-- CountryCousin

The smell factor
"Consider the smell of your home. Have a neighbor come in and smell it. You might tell them that you have been smelling something and
wondered if they could smell it too; that will help encourage them to tell you the truth. They might tell you what nobody else has -- that your
house smells like cigarettes, mold or cat urine." -- Perplexed Neighbor

"When I go into a house with smelly candles, simmering oils or baking cookies, all I wonder is what odor they're trying to cover up! I once
looked at a house where we arrived to some frantic cookie baking -- and I thought nothing of it until I went into one of the bathrooms that had a
distinct odor of sewer! So please, can the candles -- they come across as overkill (like intrusive perfume) at the least, and at worst they smack
of deception and dishonesty. I find myself thinking, if they'll cover up an odor, what else will they conceal?" -- OregonSal

"I just bought my first home and I have to say smell was an interesting factor. The house I bought always smelled amazing every time I toured
it. Some of the other ones smelled like trash or pets. I think a nice air freshener is a good, subconscious way to sell your home." -- Lauren in
Dallas

"Something else that really helps is the interior smell. If you don't feel like baking chocolate-chip cookies (seems to be a common favorite),
put a little water in a pot, add a little vanilla extract and put it in your oven at about 200 degrees. Candles are a good alternative. I would avoid
cinnamon at all costs, however. People from certain areas of the world find cinnamon to be an offensive smell." -- Realtor61

"As far as candles and cookies and such ... you really can't leave those things going in the house while you're gone. So you have to count on
cleanliness and clean-smelling things to do the trick while you're away. No. 1: Don't allow any smoking in the house while it's on the market.  
To help with other typical smells, I'd recommend the following. For the bathroom: Try swabbing the toilet daily with a little squirt of
dishwashing liquid or clean-smelling shampoo. For the kitchen: Run some ice and dishwashing liquid in the garbage disposal daily. For
carpets: Steam clean. Then steam clean again. I'd think that all things being equal, most folks could live with a paint color that wasn't to their
taste for a few months after moving in. But no one would pay top dollar for a house that appears ill-maintained and smells just plain weird!" --
wecanhope

"No offensive house odors. ... Many homes were great in appearance, but smelled horrible; we just walked out." -- petjoel

No surprises
"My wife and I sold our 1984 bi-level in three months while there are still similar homes on the market a year later that were up for sale when
ours was.  The best thing we did was have a home inspector go through our house as if we were buying it.  He told us everything that a
potential buyer would be told, and we corrected these issues in advance. Our first serious offer came with an inspection contingency. The
buyers were thrilled when the inspection came back great. SOLD!" -- dwb1999

"Operating costs: Have reasonably accurate information on the costs of your home taxes, annual heating bills, along with documentation of
any recent major repairs or upgrades such as a new roof or new wiring or plumbing." -- Coldwell Banker Terrequity

Precision pricing
"With so many houses on the market today there are two factors that actually sell a house. ... It MUST be 1. the best house for 2. the best
price." -- waddle

"The absolute most important thing you can do to help sell your home in our current market is to price it either at or below fair market value.
That isn't to say that you should give your home away at all. If you price your home too high, today's educated buyers won't even bother looking
at it. If you price it 5%-10% below fair market value, you up your chances of multiple offers in which the buyer will put their best foot forward on
their offer. By doing this, you may actually get more than fair market value for your home!"  -- Realtor61

"There is an adage in real estate: 'There is NO objection that cannot be overcome by price!'" -- Coldwell Banker Agent

"What makes a home stand out is price. … This is a business deal. Price it right and then pray." -– Grandpa Frank
                  
                           Seven Simple Steps to Raising Credit Scores in Only Three Weeks

LOS ANGELES, CA - In the wake of the subprime market fallout, lenders are making it tougher for consumers to get a loan. As a result,
borrowers are wise to try to raise their credit scores to qualify for loans, secure better loan terms and receive lower interest rates.
According to Edward Jamison, a Los Angeles-based credit attorney who has appeared as a credit expert several times on the NBC Emmy
Award-winning show, Starting Over, borrowers can follow seven simple steps to raise their credit scores. “The steps required to raise credit
scores may appear counterintuitive,” explains Jamison. “In fact, individuals should be warned that without knowledge of how credit scores are
derived, individuals can be damaging their credit scores rather than raising them when taking such actions as closing credit cards.”

Jamison, whose legal practice is focused on consumer credit repair and restoration, recommends that borrowers wishing to raise their credit
scores first check their credit limits and evenly distribute the balances they’re carrying to help increase their credit scores, or that they pay them
off in full to get the highest score increase. “Make sure your maximum limit is reported,” advises Jamison. “When no limit is reported, credit
scoring software presumes the account is ‘maxed out’.” The credit scoring software scores more favorably the closer a balance is to zero.
Balances over 70 percent damage credit the most, followed by the next tier of 50 percent and again by the tier of 30 percent of the maximum
credit limit. “Rather than carrying a large balance in an unfavorable tier, redistribute outstanding balances over several credit cards,” advises
Jamison.

Jamison also advises keeping credit cards open. “Closing credit card accounts can hurt your score unless the accounts were opened less
than two years ago, and you have over six credit cards,” states Jamison, adding that consumers should make sure to keep their old credit cards
open as well. “Fair Isaac’s credit scoring software assumes that people who have had credit for a longer time are at less risk of defaulting on
payments.”

Borrowers also need to get rid of late payments listed on the credit report. “Contact the creditors that report late payments and request a good
faith adjustment that removes the late payments reported on your account,” instructs Jamison. Since you are a customer in good standing, the
creditor may work with you. This may require more than one phone call. “If you’re frustrated, rude or unclear with your request, you’re making it
very difficult for the creditor’s representative to help you,” adds Jamison.

A very important step is for consumers to rid themselves of any collection accounts by paying them off provided the collection agency agrees to
delete them in return. Paying it off can otherwise actually lead to a decreased credit score due to the date of last activity getting updated to the
current date when you pay. “The consumer should contact the collector and request a letter explicitly stating their agreement to delete the
account upon receipt or clearance of the payment,” he states. “Although not all collection agencies will delete reporting, it’s certainly worth the
effort.”

Next, consumers should pay off past due amounts on delinquent accounts that are not in charge-off status. After that, Jamison advises getting
rid of charge-offs and liens that are less than two years old. “Charge-offs and liens that are older than 24 months do not affect your credit score
nearly as much as ones under 24 months,” says Jamison. “But if they’re newer than 24 months, they can seriously damage your credit.” If you
have both charge-offs and collection accounts, but have limited funds, he advises paying off the past due balances first, then paying collection
accounts that agree to remove all references to credit bureaus.

“Individuals can positively affect their credit scores in as little as three weeks,” explains Jamison. “It's just a matter of getting educated and
focused on the best, fastest and most reliable course of action to raise one’s credit score.”
Real Estate Outlook: Numbers Best in Months; RealtyTimes
--- by Kenneth R. Harney

Every week, it seems, there's a battle of conflicting numbers when it comes to housing.

The latest existing home sales survey from the National Association of Realtors is a perfect example. You
may have seen the news reports about another bad month for resales -- down for the sixth straight month,
according to the Associated Press, to the "lowest level" in almost a decade.

But take a closer look: Yes, resales were lower by four tenths of one percent in January, but they were
down from an upwardly-revised total for December.

Drill down just a little deeper and you find that resales of single family detached houses were actually up
in the latest month -- up by one-half of one percent. Condominium and cooperative sales, on the other
hand, took a sharper drop -- falling by 6.5 percent, and that dragged down the national sales total overall.

So the real news was mixed: Sales of detached single family units ROSE in January while condos and
cooperatives were down.

Either way you present it, though, total resales were essentially flat from month to month, hardly as
dramatically negative as the scare headlines had it. Maybe we're at bottom, maybe not, but the fact is:
Sales are not falling off the charts.

Also last week, there were some other mildly positive economic signs: Construction starts of new houses
rose by eight tenths of a percent, and home builder confidence -- as measured by the Wells
Fargo/National Association of Home Builders poll -- rose slightly as builders reported seeing stronger
flows of shopper traffic through their model homes.

Again, there's nothing dramatically positive here, but the numbers are better than they've been in months.
They simply got drowned out by all the gloom-mongering.

Even the Conference Board, a research group that represents a broad spectrum of U.S. industries far
beyond real estate, said things are beginning to look up for housing. Chief economist Gail Fosler said in
a report last week that "the housing market correction is about over … . Housing affordability is beginning
to improve, and with the recent interest rate cuts and house price declines, it should improve further."

January and February, said Fosler, "are not big months for housing, but rising affordability (plus favorable
demographic trends) bode well" for the overall outlook.

Fosler's economic report preceded last week's jumps in mortgage rates -- taking 30-year rates back over
6 percent -- but her forecast on where housing is headed is significant.

Someone's got to call the turnaround. Fosler thinks it could start this Spring.

We'll watch and see.


    
Seven Reasons to Welcome a Recession
Thursday April 3, 10:34 am ET
By Jeffrey Strain, Special to TheStreet.com

Recessions breed fear.
It's only natural. A slowdown in production at companies can result in layoffs and restructuring. People fret about their jobs and worry that it
will be much more difficult to find new employment if they are let go. These are understandable concerns.
But for contrarians and bargain hunters, recessions provide a world of opportunities.
Here are seven ways that a recession can actually benefit your personal finances:
Affordable Homes
Those who bought homes look to flip them for a quick profit and those who took out huge loans that they couldn't afford to pay will look at a
recession with fear, but a recession should have little meaning for those who bought a home with the purpose of living in it for a long time.
Recessions are usually short-lived, and the housing market should recover long before most people are planning to sell their house.
For those who had been unable to afford a house because of soaring prices in the past few years, a recession is a golden opportunity. It
brings housing prices down to more affordable levels. That means that many people who wanted to buy a house will be able to purchase
one.
Recessions are also a good time to look for investment properties or vacation homes if either had been in consideration.
A recession gives anyone looking for quality housing a lot more bang for their buck than when the economy is flying high. Being able to
purchase a quality house at an affordable price can greatly increase a person's net worth in the long run.
Low Mortgage Rates
In the attempt to ward off a recession, the Federal Reserve has made interest rates extremely low, resulting in more affordable loans for
those who are in the market to purchase a house.
While these rates may not be available throughout the entire recession if inflation continues to rise, the rates will be around as long as the
Fed can use them to ease the recession. Taking advantage of these low rates along with lower housing prices can truly make housing a
deal.
Great Consumer Deals
As the economy sours and people buy less and less, stores need to provide better deals and discounts to attract consumers to their doors.
This can mean steep discounts through sales and promotions, as well as financing that allows consumers to pay no interest over long
periods of time.
These deals are not limited to the retail stores. It also means that there are great deals in the second-hand markets, since there are more
people trying to sell and fewer people looking to buy. If you are an investor in collectibles and know them well, you can often buy collectibles
at steep discounts during a recession that can be turned into a healthy profit when the economy recovers. For those who have saved money
waiting for good deals, a recession is a great time to find those deals.
Inexpensive Stocks
While everyone is taking their money out of the market, hard economic times can be a great time to pick up stocks on the cheap when you
look at them as long-term investments. Consumer stocks for large, stable companies such as Procter & Gamble that provide necessities
such as soap and toilet paper will do well no matter what the economic conditions.
Recessions can be a great time to pick up undervalued stocks if you know what you're doing. That can greatly improve your net worth when
the stock market recovers.
Great Travel Deals
During times of recession, most people don't think about traveling. For this exact reason, traveling can be a great deal when the economy is
shaky. Lack of demand results in excess inventory, which forces hotels and other related travel industries to lower their prices. It also means
a greater inventory to choose from and the ability to bargain for upgrades and other perks. That dream vacation that you have always wanted
to take can be a lot more affordable during a recession, when travel related industries are begging for your business.
Streamline Your Finances
When things look like they are going to get a bit tougher, people begin to look at their personal finances a bit more closely and start to trim
some of the fat. They look at ways that their money can be better spent and how they can get more for each dollar that they do spend. They
pad their emergency fund a bit more and don't spend quite as freely as they do during times of rapid growth. This trimming of the fat is a
good exercise that can help you see the important financial goals that you want to achieve and, by doing so, help you reach them more
quickly.
Lower Credit-Card Rates
If you have a good credit rating, you are in a position to get extra perks from your credit-card company. Credit-card companies see higher
delinquency payment rates during a recession, and it becomes even more important for them to keep their best customers. That gives you
extra leverage to ask favors from them, such as having your interest rates lowered and annual fees waived.
While most people will look at a recession with fear and uneasiness, it's important to also realize that it's an opportunity to get some great
deals and improve your personal finances. Taking advantage will allow you to reap greater benefits from all those dollars you have saved.