Members of the Coalition delivered a letter to Secretary Geithner and representatives at the U.S. Department of Housing and Urban Development, Federal Housing Finance Agency, Federal Trade Commission, Securities and Exchange Commission, Farm Credit Administration, Department of Veterans Affairs, Federal Reserve Board, Deferral Deposit Insurance Corporation, National Credit Union Administration and Office of Thrift Supervision, declaring their opposition to Wall Street Home Resale Fees and calling on the Obama Administration to ban their use.

“This dangerous new fee is a prime example of Wall Street investors trying to profit from unsuspecting homeowners,” said Kurt Pfotenhauer, President of the American Land Title Association. “We’re asking Secretary Geithner to stand up for Main Street homeowners and buyers and stop the use of Wall Street Home Resale Fees today.”

Manhattan-based Freehold Capitol Partners is leading the push to add these fees to home purchase contracts. The fees require that a percentage of the final sale price of a home be paid to a private third party every time the property is sold, typically for 99 years. Freehold is attempting to then sell the right to collect these fees on Wall Street.

“As the leading advocate for homeownership and housing issues, the National Association of Realtors strongly opposes home resale fees, or private transfer fees,” said Lucien Salvant, Managing Director for Public Affairs at the National Association of Realtors. “They add an unnecessary and unfair burden to the real estate transaction for either buyer or seller.”

The Coalition to Stop Wall Street Home Resale Fees has already been active, raising awareness about the issue and taking action to stop these dangerous fees.

To date, 17 state legislatures in Arizona, California, Florida, Hawaii, Illinois, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, North Carolina, Ohio, Oregon, Texas and Utah have recognized the dangers of Wall Street Home Resale Fees and have restricted their use.

An official with the U.S. Federal Housing Administration confirmed that the government will not insure mortgages for properties with Wall Street Home Resale Fees and the U.S. Department of Housing and Urban Development confirmed these fees violate HUD’s regulations.

“At a time when state and local governments are cutting services to the bone, it makes no sense to force them to use tax-payer dollars to dole out unearned profits to Wall Street,” said AFSCME President Gerald W. McEntee. “This financial scheme is a pipedream for Wall Street and a nightmare for everyone else.”

“Owning a home has always been part of the American dream—for veterans and non-vets alike,” said Jon Soltz, Co-Founder and Chair of Vote Vets. “We fought to preserve the American dream for all, but these greedy Wall Street Home Resale Fees mislead homeowners and make that dream more difficult to attain.”

“This country has seen enough abusive financial practices to last a lifetime,” said Uriah King, Vice President of State Policy at the Center for Responsible Lending. “Now, yet again, homeownership and family wealth are at risk because of Wall Street’s unscrupulous practices.”

“One had thought that the concept of serfdom had been abolished centuries ago, but Wall Street is trying to re-introduce the concept through these near-perpetual fees,” said Andrew Langer, President of the Institute for Liberty. “When I own my home “free and clear” it means that I have the right to keep any profits through its sale. This practice forces a landowner into a third-party’s fiefdom, watering down individual rights in the process.”

The Coalition to Stop Wall Street Home Resale Fees has organized to fight the dangerous financial scheme of transfer fee covenants and to protect homeowners across the country.

For more information, visit http://www.stophomeresalefees.org.

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

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Four states—Florida, California, Nevada and Arizona—accounted for all top 20 metro foreclosure rates. Florida led the way, with nine of the top 20 metro foreclosure rates, followed by California with eight, Nevada with two and Arizona with one.

“While we’re seeing early signs that foreclosure activity may have peaked in some of the hardest-hit markets, foreclosures continued to rise in three-quarters of the nation’s metropolitan areas in the first half of the year,” said James J. Saccacio, chief executive officer of RealtyTrac. “The fragile stability achieved in many local housing markets hinges on improvements in the underlying economy, specifically job growth. If unemployment remains persistently high and foreclosure prevention efforts only delay the inevitable, then we could continue to see increased foreclosure activity and a corresponding weakness in home prices in many metro areas.”

Top 10 metro foreclosure rates
Las Vegas continued to post the nation’s highest metro foreclosure rate in the first half of the year, with 6.60% of its housing units (one in 15) receiving a foreclosure filing—more than five times the national average. A total of 53,525 Las Vegas properties received a foreclosure filing during the six-month period, a decrease of nearly 15% from the previous six months and a decrease of nearly 9% from the first half of 2009.

Foreclosure activity in the Cape Coral-Fort Myers, Fla., metro area decreased nearly 22% from the previous six months and was down nearly 30% from the first half of 2009, but the metro area still documented the nation’s second highest metro foreclosure rate—4.98% of its housing units (one in 20) received a foreclosure filing during the six-month period. Other Florida cities in the top 10 were Orlando-Kissimmee at No. 8 (4.15% of housing units) and Miami-Fort Lauderdale-Pompano Beach at No. 10 (3.89%).

With 4.59% of its housing units (one in 22) receiving a foreclosure filing, Modesto, Calif., posted the nation’s third highest metro foreclosure rate. Other California cities in the top 10 were Merced at No. 4 (4.47% of housing units); Riverside-San Bernardino-Ontario at No. 5 (4.37%); Stockton at No. 6 (4.37%); and Vallejo-Fairfield at No. 9 (3.91%).

The Phoenix-Mesa-Scottsdale metro area in Arizona posted the nation’s seventh highest metro foreclosure rate, with 4.28% of its housing units (one in 23) receiving a foreclosure filing in the first half of 2010.

Metros with highest foreclosure totals
More properties received a foreclosure filing in the Miami-Fort Lauderdale-Pompano Beach metro area during the first half of 2010 than any other metro area with a population of 200,000 or more. A total of 94,466 properties in the Miami area received a foreclosure filing during the six-month period, a decrease of 8% from the previous six months, but up nearly 11% from the first six months of 2009.

A total of 93,263 properties in the Los Angeles-Long Beach-Santa Ana metro area received a foreclosure filing in the first half of 2010, the second highest total of any metro area nationwide and 2.11% of all housing units (one in 47)—ranking No. 35 in terms of foreclosure rate.

A total of 78,022 properties in the Chicago-Naperville-Joliet metro area received a foreclosure filing in the first half of 2010, the third highest total and 2.07% of all housing units (one in 48)—ranking No. 37 in terms of foreclosure rate.

Other metro areas with the 10 highest foreclosure totals were Phoenix-Mesa-Scottsdale (73,352), Riverside-San Bernardino-Ontario (63,717), Las Vegas-Paradise (53,525), Atlanta-Sandy Springs-Marietta (52,381), Detroit-Warren-Livonia (47,563), New York-Northern New Jersey-Long Island (44,522) and Orlando-Kissimmee (37,352).

For more information, visit www.realtytrac.com.

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

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

RISMEDIA, July 30, 2010—(MCT)—Government cash didn’t help John Foley and Cindy Case sell their Minneapolis house before the federal home buyer’s tax credit expired at the end of April, so the couple decided to take matters into their own hands.

They hosted a backyard party with food and an open bar, invited the neighbors and professional contractors—in case potential buyers had questions about remodeling. To top it off, they’re offering their own $8,000 rebate on the $675,000 home.

Three years ago, such cash enticements were the norm—and cash was only the beginning. Sellers regularly tried to lure prospective buyers with free cars, big-screen TVs and stainless appliances at closing. But after nearly a year and a half of a government tax credit program, sellers have scaled back on marketing gimmicks and buyer incentives, largely in an effort to limit their losses.

Meanwhile, new rules aimed at reducing the risk of mortgage defaults have made many once-common incentives illegal, so many sellers are simply resorting to one of the oldest tricks in the book: dropping the price.

Aaron Dickinson of Edina Realty says that buyers today have access to more information about the market than ever before, so competitive pricing is the best way to attract attention. “At the end of the day, buyers aren’t stupid,” he said. “Gimmicks don’t work well when buyers have so many avenues to be educated about what’s for sale and what has sold and for what price.”

In addition, buyers are worried about the economy and their job and have focused on getting the best price—and the lowest house payment—rather than a free perk. Indeed, many buyers are making decisions based on the assumption that someone in their family might lose their job, said Stephanie Gruver, a sales agent with Keller Williams Integrity Lakes in the Minneapolis-St. Paul, Minn., area. “They’re buying on one income rather than two, and they’re buying within their means,” she said.

Perhaps the biggest reason for the decline in seller incentives comes from the mortgage industry itself. In an effort to reduce defaults, the government has cracked down on all forms of seller incentives. New rules are designed to eliminate any exchange of cash or property before and after a closing that might affect how much equity a buyer has in their new home. That’s an about-face from a time when underwriting standards were much less stringent and cash-back signing bonuses and other perks were a common way to help push buyers over the fence. The goal now is to maximize a buyer’s investment in the hopes that they’ll be less likely to walk away from their obligation.

Current government loan guidelines limit seller contributions—usually in the form of closing costs—on conventional mortgages to 3% of the purchase price; FHA loans allow a 6% contribution, but that’s going to be reduced to 3% during the next few months.

Lenders say that losses are mounting on mortgages in which appraisers failed to discover—or sellers failed to disclose—incentives that were never deducted from the sale price of the house. That’s led to improperly priced loans and inaccuracies in valuations. Already Fannie Mae and Freddie Mac are asking lenders to repurchase billions of dollars in improperly underwritten mortgages, including some in which enticements weren’t properly disclosed.

The government tax credit was a particularly good deal for cash-strapped buyers and sellers because it wasn’t tied to the value of the house and it arrived in the form of a check with few restrictions on how it could be spent.

To buyers spoiled by such an offer, that makes the prospect of pre-recession incentives seem a little less enticing.

“Incentives from the seller don’t replace the incentives from the federal government,” Dickinson said. “Oftentimes, it’s easier to do a price reduction than offer a rebate.”

That was Coldwell Banker’s thinking when, after the expiration of the government’s $8,000 tax credit, in June it asked its sellers to offer prospective buyers a 3% discount for purchases made by the end of the month. Participation was limited, but sellers are likely weary of still-lower prices.

But party-giver Foley, a professional marketer, attributes the pullback on incentives to an all-out surrender. “Everybody has had a hard time selling,” he said. “It doesn’t mean you stop. It’s almost as if people, including sellers and Realtors, have given up. They’ve lost faith in what they knew.” The bottom line, he said, is that sellers and their agents need to get creative and have more fun.

An evening storm rolled through Minneapolis the night of the party, which Case and Foley put together with the full support of their real estate agent. They promoted it with just about every form of social media, from Facebook to Twitter, and a few phone calls to local media. But in the hour and a half that a reporter attended the two-hour party, no prospective buyers showed. The 30 or so guests were largely friends, neighbors or the media.

Foley said several prospective buyers showed up eventually, but added his goal wasn’t to reach a high number of prospective buyers, but rather find the one who wants to buy the house.

“I’m not saying that we’re going to reap success and sell our house, but as a marketer, my chances of succeeding are greatly enhanced by putting forth some sort of imagination and effort,” he said. “Some sellers are literally giving away thousands of dollars because they haven’t given sellers a reason to buy their house. If we can market water for $7 a gallon, don’t tell me you can’t find a reason to make your house more charming or exciting for someone.”

Sales without incentives:
In lieu of attention-grabbing incentives, here’s what works best today:
-Price it right. Buyers have access to lots of data, and they’ll know if your house is too expensive.
-Offer to pay some of the buyer’s closing costs.
-Maximize exposure. Saturate the Internet and all forms of social media with your listing.
-Use great photos, not good ones. Make sure your house makes a great first impression.
-Make it sing. Listing information must be complete and well-written.
-Curb appeal matters. Spend a little money on flowers, new plants and fresh paint.
-Inside, your house should look fresh, so make sure the paint, carpeting, light fixtures and appliances are updated and clean.
-De-clutter. Eliminate one-third to two-thirds of your stuff; hire a stager.
-Network. Sales come together because brains understand homes better than computers.
-Be patient. Statistics say that it takes 21 showings, not including open-house traffic, to sell a house.

(c) 2010, Star Tribune (Minneapolis)

Distributed by McClatchy-Tribune Information Services.

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

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

The study, now in its third year, measures customer satisfaction of home buyers and sellers with the largest national real estate companies. Overall satisfaction is determined by examining three factors for the home-buying experience: agent/salesperson; office; and variety of additional services. Four factors are examined for the home-selling experience: agent/salesperson; marketing; office; and variety of additional services.

Overall satisfaction among home buyers averages 803 on a 1,000-point scale in 2010—increasing by 12 points from 2009. This improvement is primarily driven by increased satisfaction with agents and salespersons. In contrast, overall satisfaction among home sellers has declined by 40 points from 2009 and averages 742 in 2010. Among home sellers, satisfaction has decreased in all four factors, with the largest declines observed in marketing of the home and the variety of additional services offered.

“Among both home buyers and home sellers, the importance of agents and salespersons has increased substantially in 2010, compared with 2009,” said Jim Howland, senior director of the real estate and construction practice at J.D. Power and Associates. “Buyers are increasingly relying upon negotiating skills of agents and seem to be satisfied with the purchase prices they are obtaining. Despite the fact that selling agents appear to be doing a good job of negotiating and marketing on behalf of home sellers, the tough economic conditions are negatively impacting their overall satisfaction with real estate companies.”

In the home-buyer segment, Keller Williams ranks highest for a third consecutive year, with a score of 817 on a 1,000-point scale. Keller Williams performs particularly well in the agent and office factors. Following in the rankings are Prudential (811) and Coldwell Banker (805). Prudential performs well in the additional services category.

Among home sellers, Prudential ranks highest with a score of 760 and performs particularly well in the marketing and agent factors. Prudential is the only company to improve in home-seller satisfaction in 2010, compared with 2009. Following Prudential in the rankings are Keller Williams (751) and RE/MAX (744). Keller Williams performs particularly well in the office factor.

The study finds that fewer than one-half of home buyers and sellers indicate their agent asked them to provide a referral or recommendation to a friend or family member.

“Positive recommendations are a critically important driver of new business for agents, and there is ample opportunity for improvement in this area,” said Howland. “Particularly during tough times in the real estate market, asking for referrals and recommendations should be considered an essential part of doing business.”

J.D. Power and Associates offers the following tips to consumers who are buying or selling a home:

- Finding the right agent to suit your specific needs is critical. J.D. Power research has consistently demonstrated that having the right agent is critical to a satisfying home-buying or -selling experience. Due to the unique nature of real estate transactions, clients often form bonds with their agents, as a single buying or selling transaction can take several months or more to complete. For customers who have previously bought or sold a home, the right agent might be someone they’ve worked with successfully in the past. For first-time buyers, seeking recommendations from friends, relatives and colleagues is critical. Increasingly, agents and brokers are advertising their services on the Internet, so this can be a good starting point for research, particularly for someone moving far away from their current location.

- In addition to a buying or selling agent, consider the additional services you may require. Buying and selling a home is a complex undertaking with many “moving parts” to consider. In addition to the real estate agent you work with, you may also need to work with a loan officer, a financial institution, title/escrow company, inspectors, appraisers, home warranty agents, movers, storage services, contractors, etc. One of the advantages of using a full-service real estate company is that they can assist with finding and coordinating some of these necessary additional services.

- For sellers, marketing one’s home should be a primary focus. In addition to finding the right agent, home sellers should pay special attention to tools used to market the home. When selecting an agent, find out their approach to open houses and online marketing, in particular. J.D. Power research finds that home buyers often search for homes online long before they engage a buying agent, or even attend an open house. Ask about which websites will contain the home listing, the number of home photos that can be included and if any special features will accompany the listing, such as virtual tours or mortgage calculators. Tools that assist prospective home buyers may help attract attention to the listing.

- For buyers, it’s important to understand the full cost of the home prior to making a purchase. It’s prudent for home buyers to establish a housing budget and to expect agents to show homes in the appropriate price range. Particularly for first-time buyers, it’s important to understand all the associated fees and expenses that go along with purchasing a particular home. These can include one-time expenses, such as ‘points’ that lower mortgage rates, title fees and appraisals, as well as ongoing expenses such as homeowners association fees, property taxes, or other specialized local taxes that can impact your monthly payments.

For more information, visit www.jdpower.com.

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

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Richard Lepsinger, president of OnPoint Consulting and author of Closing the Execution Gap: How Great Leaders and Their Companies Get Results offers his favorite tricks of the trade for getting these bridges underway.

Bridge Builder 1: Create and Use Action Plans
Action plans are the cornerstone of effective execution. They are the way you translate broad strategic objectives into specific, more easily monitored activities for teams and individuals. In short, they help you manage the work and bridge the gap between strategy and results. There are three steps to creating and using action plans:

Step 1: Clarify your goals and standards. This step provides direction for the work, gives you something on which to base individual action steps and helps determine when a project is complete. A good goal statement is specific, measurable and time bound. Standards are statements of quality, quantity, and timing required for success. They drive action steps and answer the question: What actions must be taken to meet these standards?

Step 2: Develop your action plan. An action plan helps you manage the workload, review and appraise project progress and communicate about the work to be done. Its basic components include action steps that break down the work to be done into tasks and activities, accountabilities identifying the party/parties responsible for doing each step, a schedule with start and completion dates for each action and resource requirements such as equipment, people, money, or anything else needed to complete action steps.

Step 3: Minimize risk. You can do a bang-up job on the first two steps, but if you don’t pay attention to this one, you are likely to fail. A truly well-thought-out plan must include an assessment of the potential problems that could derail it, safeguards to stave off these “what ifs” and the determination of what will be done if problems occur despite your best efforts.

Bridge Builder 2: Expect and Get Top Performance
In today’s competitive business environment, you need every member of your team working at his or her full potential. The evidence is overwhelming: when we believe people are capable, we treat them like they are capable and they come to believe they are capable. Unfortunately, the converse is true as well. This powerful dynamic starts when your expectations (high or low) are translated into behavior.

Break your own “low expectations” mindset. One way to do this is by focusing on what low performers do well. Find the thing your marginal employee currently does well, no matter how small, and focus on that. Start where you and she have confidence in her ability to deliver results and move out from there. Set a modest stretch goal that is easily attainable and provide the appropriate coaching and support as she takes the risk and tries something new.

Beware of (seemingly benign) self-esteem eroders. Even if you pride yourself on being a “straight shooter,” there is a right way and a wrong way to give feedback to your employees.

DON’T say: “I want you to realize that this is the second time we’ve discussed your department’s lack of productivity. I don’t intend to discuss it again.”

DO say: “Last time we spoke, you said you felt an 8 percent increase in productivity was reasonable. However, the department is at 2 percent. What has happened since we last reviewed this issue?”

See the difference? By focusing on the problem and not the person, the manager is able to address the issue without eroding her direct report’s self-esteem. And by asking the person how he would handle the situation and involving him in determining the solution, he signals that he has confidence in his ability and uses the interaction as a coachable moment.

Catch people doing something right. Providing recognition for a job well done has a powerful effect on people’s performance. It reinforces good work and shapes future behavior. It motivates, builds trust and builds self-esteem and confidence. It makes people more receptive to feedback for improving performance.

When done well, recognition is more than just a “psychic hug” that makes a person feel good about herself. It’s a way of helping her understand what “good” looks like. The message is, “This is what it looks like when it’s done well, so keep on doing it.” Second, you’re saying, “You can do this.” Recognizing calls the person’s attention to the fact that she has accomplished something important or made meaningful progress.

Bridge Builder 3: Hold People Accountable
We all know accountability is important, yet many of us don’t hold others accountable for their actions. In the heat of the moment it seems faster and less of a hassle to just “let it go”—though, obviously, this approach does not work in the long-term. The good news is leaders can create an environment that enables others to operate at a higher level of responsibility. For example:

Boost accountability on the front end by setting people up for success

Three simple actions will help get things off to a good start:

1. Clarify expectations. Here’s where you explain “what good looks like.”
2. Establish unambiguous due dates. Saying things like “as soon as possible” and “by next week” lay the foundation for misunderstandings. (Does “by next week” mean before next week? Does it mean Monday of next week or Friday of next week?)
3. Schedule periodic check-ins. Agree to these upfront with the employee and you won’t be viewed as a micromanager. These progress checks will be seen as a mutually endorsed activity.

When an employee misses a target, ask him these three accountability questions:

1. What can you do right now to get back on track?
2. How did you contribute to this situation?
3. What can you do in the future to ensure this will not happen again?

These questions allow you to help the employee solve the problem, rather than trying to pinpoint blame. They also protect his self-image and help minimize excuse making.

Bridge Builder 4: Involve the Right People in the Right Decisions
Decision making is a complex activity that uses a variety of mental processes. Many of these processes compete for dominance, and the quality of our decisions is determined by which ones win out. (For instance, your emotional processes can overrule your logical, deliberative ones). But there are things you can do to improve the quality of decisions made by you and your team members.

Understand what “delegate” truly means. Managers must walk a fine line between the “dump and run” approach to delegation and the “over-engineered” (a.k.a. “micromanaging”) approach. When you practice effective delegation, you:
-Provide enough lead time for tasks to be done right
-Share relevant facts and the big picture
-Assign jobs to people who are competent to do them
-Build confidence and competence with sincere feedback

Realize that sometimes it’s okay to be an autocrat. Other times you need to build consensus. There are three very different (yet equally valid) ways of involving people in decision making: autocratic decisions, consultation decisions and group decisions. All three types of decisions are valid. The one you choose depends on three more factors: decision quality, decision acceptance, and the amount of time needed to make the decision. Yes, it’s complicated—which leads us to the next point:

Outsmart your brain with a systematic decision-making process. That’s right. Rather than relying on instinct or going with your gut, you should use an objective, systematic process for making decisions. This helps you avoid letting emotion or bias cloud the issues or simply defaulting to the kinds of decisions you’ve made in the past. This will also force you to incorporate risk assessment in your decision making.

Bridge Builder 5: Facilitate Change Readiness
Execution frequently requires a change in behavior on the part of those you depend on to successfully deliver the expected results. Some of the most powerful tools and models for creating behavior change come from work being done with people trying to change addictive behaviors like smoking, overeating, and drug abuse.

Don’t preach or lecture. Research shows that when leaders expect people to be resistant, they treat them that way. When leaders “push” too hard and “tell” people why they need to change, employees tend to react by becoming more entrenched in their own position. Consequently, leaders get the behavior they expected (without realizing they helped cause it) and continue to push for change—which just perpetuates the situation.

-Help employees “talk themselves into” wanting to change. To diminish change resistance, ask these two important questions:

1. On a scale from one to ten, how important do you think this change is?
2. On a scale from one to ten, how confident are you that you can make this change successfully?

When the other person gives you her “importance number,” instead of asking, “Why is the number not higher?” ask, “Why is the number not lower?” (“Why did you give it a six instead of a four?”) The idea is to use the person’s answer and expand on it to emphasize and reinforce her awareness of the need for change.

Reinforce “change-talk.” Your instinct will be to try to convince the person that the importance number should be higher. Instead, encourage her to say more about her thoughts and feelings about the change and reinforce change-talk by:

-Pressing for specifics by asking her to elaborate
-Reinforcing the positive change statements by agreeing with the person’s insights and comments that support the change

Bridge Builder 6: Enhance Cooperation and Collaboration
Organizations are complex structures with many interdependencies. We must rely on others to help get things done and meet our objectives, and that means cooperation and collaboration are often the key to our success. Here are a few ways to ensure the conditions that create and sustain cooperation and collaboration are in place:

Make sure they really understand what you’re saying. When you demonstrate you want to cooperate, people will usually respond in kind. But first you must be sure your communication is clear and transparent. Two simple actions—not assuming people know what you are thinking and paraphrasing to check for understanding—can go a long way toward meeting this goal.

Align interests and establish common ground. It just makes sense: when everyone is working toward the same goals and outcomes, they’re more likely to cooperate. On the other hand, when the objectives of one person or group are at odds with the objectives of another, efficiency and reliability suffer.

Avoid these seven conflict management mistakes:
1. Minimizing or ignoring others’ concerns
2. Pulling power plays
3. Attacking the legitimacy of others’ positions or priorities
4. Suppressing differences
5. Imposing own goals/priorities
6. Refusing to temporarily remove constraints
7. Going through the motions of managing the difference, but refusing to carry it through

Once in place, cooperation is a delicate state. People will still have disagreements and different points of view about how and when things should happen. Your ability to effectively and constructively influence others and gain their support is critical to maintaining cooperation.

About the Author:
Richard Lepsinger is president of OnPoint Consulting and has a 25-year track record of success as an organizational consultant and executive.

For more information, visit www.onpointconsultingllc.com.

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

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

The RMI measures market demand for current and future residential remodeling projects based on remodelers’ perceptions and indicators of future activity like calls for bids. Any number below 50 indicates that more remodelers say market conditions are getting worse than report improving conditions. The RMI has been running below 50 since the final quarter of 2005 and during the last quarter approached the break even point again.

“Remodelers are suffering from weak consumer confidence and constricted credit lines,” said NAHB Remodelers Chairman Donna Shirey, CGR, CAPS, CGP, a remodeler from Issaquah, Wash. “Homeowners are delaying remodeling projects because of economic uncertainty.”

The current conditions indices for the remodeling market worsened in two regions: Northeast 41.4 (from 46.6 in the first quarter); and South 42.4 (from 44.1). However, current remodeling indices improved in the Midwest 44.7 (from 43.8) and the West 42.0 (from 34.8). Major additions fell to 44.2 (from 48.0), as did minor additions to 45.8 (from 47.3). Maintenance and repair indicators showed a milder decline, from 37.3 to 36.6.

All the indices for future remodeling business declined. Calls for bids dropped to 46.2 (from 49.4). Work committed for the next three months slumped to 27.9 (from 29.9). The backlog of remodeling jobs dipped to 37.7 (from 44.8), and appointments for proposals slid to 43.7 (from 48.1).

Responding to additional special questions in the survey, remodelers also reported on the changing composition of remodeling projects. Sixty-one percent said bathroom remodeling was one of their most common projects during the first half of 2010. Kitchen remodeling came next with 52%. In previous years, kitchen remodeling was reported as the most common activity by more than 70% of remodeler respondents.

In general, comparisons to historical data show that larger remodeling projects (such as room additions, whole house remodeling, bathroom additions, and second story additions) have been on the decline for several years. Smaller remodeling jobs (such as window and door replacements) have remained relatively steady, or, in the case of handyman services, actually increased. For example, only 29% of remodelers reported that room additions were a common activity in 2010, compared to 70% in 2004. Conversely, none of the professional remodelers responding to the survey reported that it was common for their companies to perform handyman services in 2004, while 33% of remodelers were regularly providing handyman work in the first half of 2010.

“While remodelers are continuing to struggle, we expect the rest of 2010 to be a period of stabilization for remodeling, with the first stages of recovery emerging by the end of the year, followed by a more robust recovery beginning early next year,” said NAHB Chief Economist David Crowe. “For now, professional remodelers are taking on smaller projects and working to find consumers willing to spend money despite the economic uncertainty.”

For more information, visit www.nahb.org.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

The average 15-year fixed mortgage inched lower to 4.17%, and the larger jumbo 30-year fixed rate remained at 5.43%, both record lows. Adjustable rate mortgages were mixed, with the average 5-year ARM nosing higher to 4.07% and the average 7-year ARM dipping to 4.35%.

Mortgage rates haven’t shown much movement during the hot, lazy days of summer. But with mortgage rates at previously unseen lows, no one is complaining. Right now there is no real conviction about whether the economy is getting better or getting worse, so there is no real catalyst for volatility. Stay tuned though, as mortgage rates can—and often do—move suddenly.

The last time mortgage rates were above 6% was Nov. 2008. At that time, the average rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.71%, the monthly payment for the same size loan would be $1,038.48, a savings of $203 per month for a homeowner refinancing now.

Survey Results:
30-year fixed: 4.71% – down from 4.74% last week (avg. points: 0.44)
15-year fixed: 4.17% – down from 4.18% last week (avg. points: 0.38)
5/1 ARM: 4.07% – up from 4.06% last week (avg. points: 0.31)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For more information, visit www.bankrate.com.

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Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Outdoors, the bright white stucco exterior is elegantly contrasted by rich dark wood singles, architectural elements and wood-framed windows. Red brick flooring gives way to two covered seating areas in addition to the two-car garage. The porch overlooks the home’s immaculately landscaped yard, featuring lush greenery and sculpturally-laid white walking stones toward the detached guest home—a 900 square foot studio with a full bath and kitchenette. A custom built-in outdoor oven and stove completes the outdoor space, creating a perfect backdrop for intimate gatherings or larger entertaining.

Coronado, also known as Coronado Island and the “Crown City,” is an affluent city located five miles from downtown San Diego, California. Located on a peninsula connected to the mainland by a 10-mile isthmus called the Silver Strand, known locally as “The Strand,” Coronado boasts three world-class resorts.

On August 12, 2010, Concierge Auctions will conduct a live, on-site luxury real estate auction. Originally listed for $2,899,000, the auction is absolute, meaning the property will sell to the highest bidder regardless of price. The sale is in cooperation with Ashlee Nicolls of Park Life Real Estate.

For more information, visit www.CoronadoLuxuryAuction.com.

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To see last week’s Featured Listing, click here.

RISMEDIA, July 30, 2010—(MCT)—The White House’s recent prediction that the deficit would hit a record $1.47 trillion this year poured new fuel on the fiery argument over whether the government should begin cutting back to avoid future inflation or instead keep stimulating the economy to help the still-sputtering recovery.

But increasingly, economists and other analysts are expressing concern that the United States could be edging closer to a different problem—the kind of deflationary trap that cost Japan more than a decade of growth and economic progress.

And as Tokyo’s experience suggests, deflation can be at least as tough a problem as the soaring prices of inflation or the financial pain of a traditional recession.

When deflation begins, prices fall. At first that seems like a good thing. But soon, lower prices cut into business profits and managers begin to trim payrolls. That in turn undermines consumers’ buying power, leading to more pressure on profits, jobs and wages—as well as cutbacks in expansion and in the purchase of new plants and equipment.

Also, consumers who are financially able to buy, often wait for still lower prices, adding to the deflationary trend.

All these factors feed on one another, setting off a downward spiral that can be as hard to escape from as a stall in an airplane.

For now, the dominant theme of the nation’s economic policy debate remains centered on the comparative dangers of deficits and inflation. However, economists across the political spectrum—here and abroad—are talking more often about the potential for deflation.

So how likely is the problem?

The latest U.S. data are sobering: Consumer prices overall have declined in each of the last three months, putting the inflation index in June just 1.1% above a year earlier. The core inflation rate—a better gauge of where prices are going because it excludes volatile energy and food items—has dropped to a 44-year low of 0.9%.

That’s well below the 1.5-2% year-over-year inflation that the Federal Reserve likes to see, and some Fed policymakers have raised concerns about the rising risk of a broad decline in prices.

Private economists and financial experts have expressed much greater concern.

“I think we have to take it seriously,” said John Mauldin, president of Millennium Wave Advisors in Dallas, who puts the probability of deflation at more than 50%. Among the reasons he cites: a lot of unused labor and production capacity, increased savings and the low speed at which money is changing hands.

“It’s a good bet that by some measures we’ll be seeing deflation by some time next year,” Paul Krugman, the Nobel laureate economics professor, said this month in his New York Times column. He went on to scold the Fed for standing idle while the nation is “visibly sliding toward deflation.”

But the Fed’s chief, Ben Bernanke, appears to think deflation fears are overblown. During his semiannual testimony to Congress last week, he told senators that he didn’t view deflation as a near-term risk.

In the Fed’s latest forecast, core inflation is projected to stay at the current pace this year, then gradually rise toward 1.5% in 2012.

Should deflation occur, the central bank has the tools to reverse it, he said. But many question whether the Fed can do much more, given that it already has pushed interest rates to historical lows and pumped more than $1 trillion into the financial system.

Also, Bernanke said, America’s economy is more vibrant and productive than Japan’s was, and its labor force isn’t declining, whereas Japan’s has been for much of the last decade. Japan also was much slower in addressing problems with its banking sector than the U.S., he said.

Japan’s aging population and rigid business and political systems have clearly contributed to the country’s long economic malaise, which began in the 1990s. But there are some notable similarities with America’s latest economic slump.

In both cases, real estate bubbles burst after years of rapid growth and low unemployment, exposing poor loans and serious problems with financial institutions and regulations.

In both countries, the crash led to a sharp fall in real estate prices and financial markets and to soaring unemployment.

Yet the scope and economic fundamentals of the two crises are very different, said Richard Katz, editor of the Oriental Economist Report, a New York newsletter focusing on Japan and U.S.-Japan relations. Commercial land prices in Japan’s six largest cities soared 500% from 1981-1991, Katz said, and the bust took them down below 1981 levels.

The U.S. housing slump has been bad, but nowhere near that severe. And whereas bad debts pervaded Japan’s entire economy, Katz argued, the U.S. recession wasn’t the result of structural flaws, but rather of excesses in the financial system that came from deregulation and other policy mistakes that he sees as correctable.

“The policymaking response in the U.S. is better, in part because of the precedence of Japan,” Katz said, noting that it took Japan’s central bank nearly nine years to do what the Fed in essence did in 16 months: bring short-term interest rates to zero.

But like Japan, some analysts suggest, the U.S. is heading into a long period of stagnant growth, in large part because of high unemployment and an overhang of debts that will restrain consumer spending—now at 70% of the nation’s gross domestic product.

Those factors tend to hold down wages, putting more downward pressure on prices. And once deflation sets in, consumers may hoard cash or try to pay off their debts faster, fueling the downward spiral of spending and growth.

Bernanke said bond-market measures and consumer surveys show little change in expected inflation. “And that stability of inflation expectations is one important factor that will keep inflation from falling very much,” he said.

Some economists remain skeptical, saying such expectations can turn very quickly or conditions can change in stealthy ways.

“People don’t see it coming,” said John Makin, a visiting scholar at the conservative American Enterprise Institute. He said he doesn’t take much stock in consumer surveys about inflation expectations because most people have been ingrained to expect inflation in the future, not deflation.

Makin also thinks some price declines are indirect and not reflected in government reports. Many online retailers now provide free shipping, and more businesses are offeringspecials such as “buy two, get the third free”—the functional equivalent of price cuts.

In one measure that Makin calls a “flashing red light,” yields on 10-year Treasury bonds, which rise with inflation worries, have slipped to less than 3% from 4% in April.

Among businesses, many restaurants are feeling the squeeze because they’re finding it tough to pass higher costs along to customers.

Prices for restaurant food rose 1.2% this June from June 2009, much slower than the 3.8% rise during the year-earlier period. Meanwhile, the purchasing cost for restaurant operators this June was up 4.7% from June 2009, said Hudson Riehle, chief economist at the National Restaurant Assn.

Charlotte Kubsh, a St. Louis-area homemaker, would not be surprised that businesses have little power to raise prices. She said her husband, who works for a trucking firm, didn’t get a raise last year.

They’ve long been strong savers, she said, and with their income seemingly frozen, they don’t plan any big spending any time soon.

(c) 2010, Tribune Co.

Distributed by McClatchy-Tribune Information Services.

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Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Richard and Brenda Rose
Owners
Realty Executives Advantage
Bowie, Maryland

Region served: Baltimore, Maryland and Washington, D.C. area
Number of offices: 1
Number of agents: 75
Average listing price: $300,000
Average time on market: 90 days

How do you keep your agents motivated, especially in today’s market?
It has been tough to keep our agents motivated in today’s market, but we have focused largely on getting back to basics, which has been successful for us. We have had to adapt to the realities of the market and that means calling past customers as well as keeping in touch with your sphere of influence in addition to family and friends who may be selling or buying.

What strategies do you find most effective in communicating with your agents?
Communicating effectively with our agents means taking the time to walk around the office each day and talking with our agents about how things are going. While many of our agents have been with us for many years, we work hard to show them that we support them, whether this means stopping by their open house or even getting them to office meetings and functions.

How are you keeping consumers educated about today’s buying opportunities?
We are working hard to keep our agents on the phone with consumers in order to educate them about today’s market. By sharing information with our agents, they are then able to talk with consumers and tell them that now is a great time to buy as interest rates are down, prices have leveled out and the inventory is up.

When it comes to listing homes, what’s your pricing strategy?
Pricing a home correctly is simply about studying the comps and finding out the seller’s sense of urgency. In addition, agents need to get their sellers to trust them so they can list the house correctly from the beginning.

What makes your company unique in today’s market?
We have a great management team that has a lot of management experience and we work closely with our agents to show that we genuinely want them to be successful. We are a diverse group of individuals, but we know that if we all stick together, we will make it through this challenging market.

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

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.