Is Inflation A Good or Bad Thing, and Other Lies, Distortions, Half - Truths & Misconceptions?

Economics, economic theories, and political realities often cross paths, and make many people wonder what's going on. We have offered heard about the dangers of inflation, the dangers of recession, and other similar terminology, yet most of us will hear the media, and especially the business media, one day warn of the risk of inflation, and another day cite the lower than anticipated inflation rate as something to be concerned about. There are even different sets of indexes, one that includes core items (whatever that really means) and another that measures the inflation rate including energy costs. Nearly every time some company releases its financial results, reporters claim that it has either over or under - performed related to expectations, and rarely are the predictions correct or accurate.

The only thing that most American consumers concern themselves about from day to day, is how these costs impact them. Is their cost of living going up, staying the same, or going down. I have not met anyone recently that has told me that he feels that things are costing him less. At the supermarket, manufacturers continuing their clever "game" of effectively raising prices by keeping prices the same but reducing the package size. Shouldn't pricing be considered for these cost of living indexes the way the unit pricing is required by a lot of states, that is, by showing the cost per ounce, or per serving? Most of us have observed increased costs in milk, most meats, fowl, fish, cans of soda, bottles of soda, etc. Sometimes, manufacturers try to give the impression that they have not raised prices, so they maintain (at least initially) prices, but reduce the size. Yesterday's one - pound can of coffee is now either a twelve ounce (or less) portion. This is also true of grocery and candy packages, etc. Yet, we are being told that there is no or little inflation.

Gas prices are constantly fluctuating, yet the pattern is that prices go up. In the last several months, we witnessed a significant drop in the price of a gallon of gas, only to see it appear to bottom, which has been reflected in about a twenty - five cents per gallon increase in the last month. About the only thing that has not kept pace with these increases is average wages. Many workers are being paid for fewer hours, while others have been laid off. The unemployment rate statistically has been as high as about 9.5%, and is now around 6%,  but realistically is closer to 15%, when you consider those who are no longer searching, or are considerably under - employed.  Many Americans are either under-employed or unemployed, and this has been going on for so long, that, for many, unemployment benefits are expiring. If these people's benefits run out, the statistics will show a lower unemployment rate, because the official statistics does not count people not collecting benefits. It also does not count individuals who owned small businesses, that had to go out of business, because owners of these types of businesses are generally not eligible for unemployment,

The bottom line is that statistics are misleading. There is an old saying that the difference between a recession and a depression is, that it's a recession when it happens to someone else, and a depression when it happens to you. It is time for the American public to demand that our government officials stop partisan politics, and realistically address the economy and the joblessness issues, making those the overwhelming top priorities? Isn't it also time for each of us to pay far more attention to the reality, rather than merely how they are hyped?

Important Things To Know About Mortgages

The vast majority of houses sold in the United States require the buyer to secure a mortgage for a large portion of the home's price. Very few home buyers are either willing or able to purchase a house without getting a mortgage. One would think, therefore, that since so many people either presently pay a mortgage, have previously paid a mortgage, or require a mortgage to purchase a house, that there would be more knowledge and understanding by the public about the subject of mortgages, how they work, what the options are, etc.

During the "housing bubble," many lenders were often indiscriminately approving people for mortgages. These lenders were granting mortgages at some times for even more than the value of the home. They were also rather lenient about credit, and very liberal in terms of valuations. Probably in large part due to the housing crisis in the last few years, lenders have taken a far more conservative approach. Today, some lenders have somewhat relaxed their standards, often having different products, terms and rates available, depending on one's credit - worthiness, etc.

Most lenders today require excellent credit to be approved for a mortgage. The lowest mortgage rates are generally approved only for individuals with credit scores approaching 750 (from 720 -750 FICO scores, depending upon the lender), and, in most cases, lenders will not even consider an individual with a credit score lower than 650. Obviously, this has tightened the mortgage market, and has indirectly been another factor in bringing down home prices.However, with today's continued low mortgage interest rates, we have seen an uptick in the real estate market, with the first quarter of 2015 being the strongest in years, despite the harsh weather conditions.

Years ago, many lenders would require far lower down payments than they presently do. Many buyers were then even able to purchase houses with no out of pocket expenditure, and some lending institutions even loaned over 100% of the houses selling price. Today, the vast majority of lenders expect home buyers to pay approximately 20% of the price of the house, and will only loan up to about 80% of the price that the lender values the house at. Understand that there are some programs available for well - qualified buyers (within certain limits) to get a 10% down mortgage, at excellent terms. VA Loans even offer 100% mortgages and far easier terms to qualified veterans.

Many home buyers are confused by what they will be paying for the loan. There are many factors involved, and the rates fluctuate. Some institutions will, however, lock in a loan rate for a certain short time period (generally ranging from 30 to 90 days). In addition, some loan rates are quoted with no points, and some require points. Home buyers should understand what a "point" represents. In the mortgage industry, a "point" represents a percentage. Therefore, if a loan is quoted with one point, it means that the home buyer must prepay to the lending institution one percent of the amount of the loan. Therefore, for example, if the amount of the mortgage is $500,000, one point means that the buyer must prepay $5,000 to the lending institution.

A mortgage may be either a fixed rate or an adjustable rate loan. A fixed rate means that the buyer will be paying the same interest rate during the term of the loan. An adjustable rate, or variable rate loan, will lock in a rate for only a specified time, and then will change. Variable rate loans are generally "pegged" to some official index, such as the Treasury Bill, Treasury Note, or Treasury Bond index, or some other index that the lending institution specifies. Lending institutions have often offered low introductory rates for a short period, and then those rates rose when the term for readjustment arrived. Adjustable rate loans may lock in the initial rate for any specified term, but is generally anywhere from six months to five years. Therefore, if an individual plans on only living in the house purchased for a relatively short period, and, for example, a five-year adjustable mortgage had a significantly lower interest rate, it might make sense for the buyer to opt for that type of loan. I strongly recommend that buyers carefully discuss their options with a trusted financial professional, such as a Certified Public Account, or Certified Financial Professional, or real estate professional, etc.

Both buyers and sellers must agree to a realistic price based on comparative market values, or the lending institution will not "comp" the house, and the buyer will have to come up with significantly more personal funds to purchase a house. Other areas that need to be considered are securing a professionally examined and prepared Home Inspection, prior to agreeing to purchase any house.
These items are only a brief and cursory view of the many factors impacting mortgages. Home buyers should study and fully understand mortgages, their ramifications and their options, prior to purchase. A home buyer should always ask himself, "Do I feel comfortable with a monthly payment, which includes mortgage (interest, principal, escrow), taxes, utilities and maintenance (including a reserve for contingencies). Unfortunately, many buyers purchase emotionally rather than logically!

Responding to E - Mail

Far more communication today is done electronically or digitally than any other way. In fact, while the average email is responded to within approximately twenty four hours, the typical text is responded to in minutes. Some have even postulated that this has made email today's "snail mail."
While people answer texts far sooner than emails, much more detailed information is often transmitted via email. Therefore, what is an acceptable time period to respond to email? The answer to that often relates to circumstances, and such factors as whether someone carries a BlackBerry, Android, Windows, or iPhone type of device, or if someone is in an office with computer access. However, as someone who has consulted to businesses and organizations on Customer or Member Services for over three decades, the answer from a company or management's perspective should be almost immediate. If someone carries a Smart Phone with email capabilities, the receiver of an email should respond almost immediately, either with an answer, or when an answer will be forthcoming. In certain industries, such as real estate, it has been found that there is a direct correlation between sales and listings, and response time to emails, because the consumer realizes that there is competition, and will "shop" elsewhere. Sales representatives, which include financial planners, real estate professionals, etc., must realize that their potential customers or clients, are often sending an e-mail to more than one individual, and that the person who responds first, generally has the best chance on becoming that person's representative. In addition, if you want to transform a mere customer to a consistent client, remember that many today expect and/ or demand near- instantaneous responsiveness! 

Similarly, in an organization, if a member emails the headquarters office, or any of the Officers or Board Members, that member is entitled for a prompt response. The easiest way to demotivate a member, and to create member resentment is to ignore a request, no matter how minor. Those in leadership positions should emphasize responsiveness as a major tenet of operational responsibility and responsiveness.

The odd thing is that often the same individuals who complain about how someone else takes so long to respond, is just as bad themselves. Of course, not every email requires or needs a detailed response, yet there should be some response to the sender indicating response of the email and the action that will be taken. This can be short and to the point, yet it indicates a caring and responsiveness, thus making the sender feel that his interests and concerns are being, or will be addressed in the near future.

As someone who has been involved in both Leadership and Sales Training for over three decades, I have always emphasized responsiveness. It is rude and wrong to not return telephone calls, or give someone a complete answer. It is equally wrong and ill advised to not respond immediately to emails, even if it means just sending an email immediately saying it will be looked into, and you will get back to the person. This should be and is common sense, but as we know, common sense is rarely common.

Do You Really Need To Hire A Consultant?

As someone involved in consulting for over three decades, it may appear somewhat self serving for me to write an article regarding whether someone should hire a consultant. In some ways it may be, but not for the reasons that you might expect. My intent in writing this article is not to convince anyone to use a consultant, but rather what qualifications one should look for before considering anyone as a consultant. In addition, since all consultants are not equal in knowledge, expertise, or results, I have found that those "consultants" that use the "one size fits all" method are often not consulting, but merely trying to sell something. These individuals masquerading as consultants often smear the image of professional consultants. This concept applies to nearly any type of endeavor, including personal matters, organizational or business concerns, or depending upon any type of sales representative, especially in service - oriented industries, such as financial planning, selecting the best real estate professional for you, etc.

A consultant should only be utilized if you have a well thought out, and considered reason for speaking to one. What is your intent in looking for a consultant? What are you hoping that a consultant can and will do for you? Therefore, the first step any individual, business or organization should do is formulate their objectives - - that is, what they wish to accomplish. What is the goal? What are the needs? What are the financial implications of either taking action, or maintaining the status quo?

True consultants do not begin with a self serving agenda, or any preconceived notion of what they will recommend. Professional consulting should always begin with an exploration stage. That means that there must be a "getting to know you" beginning, where the consultant predominantly observes and listens, and only comments when asking probing questions that might enhance the understanding. Every aspect must be reviewed before comment, because different organizations have different cultures, ethos, and missions, as well as varying financial needs and requirements. A consultant must be given the latitude to delve thoroughly in all interrelated area, and not feel pressured to agree with any presently existing attitude or behavior. An individual or organization that is unwilling to be critiqued and even criticized should not hire a consultant, because any consultant that agrees to an engagement without that kind of freedom, is certainly not a professional, and almost invariably will not offer any valuable input. Similarly, any consultant that has a tendency to lead all clients in the same direction, is not honoring the true code of a professional.

Professional consultants would far rather not take on a client than to be hindered in doing the best job possible. Organizations and their leaders must fully understand this premise before deciding whether or not to engage the services of a consultant.

Why Negotiating Is Both An Art, and A Science?

Have you ever thought about how many aspects of life are related to, or involve negotiating? Isn't it a fact that nearly everything we do ends up more successfully if we are capable negotiators? However, despite the fact that it is so important, whether we are involved in selling, leadership, contracts, any business aspect, as well as in our day - to - day interpersonal dealings, very few individuals ever fully explore the needs, requirements, components, techniques, or nuances that are so relevant. Unlike many other techniques, effective negotiations must be understood as both an ART, as well as a SCIENCE! Think about how this relates to how a real estate buyer or seller might be best served by a specific real estate professional!

1. The A, R and T of ART should help propel us towards creating the best opportunity for success. Of course, it begins with the right attitude, which must be positive, proactive, and one that willingly cooperates. When this becomes the opening mindset, the negotiations are approached to bring forth a win - win scenarion, rather than an adversarial beat you opponent one!

2. Never go into a negotiation unless you do so by seeing reality the way it is, rather than merely the way you might wish it to be! This requires a commitment and search for actually understanding needs and nuances, and going forth with an open mind, rather than prejudging.

3. No negotiation, no matter how well trained or qualified the negotiator may be, will bring forth the results you desire unless you understand that there must be mutual trust between negotiating parties. However, one can't just hope for, expect or ask for this type of trust, but rather must earn it, by a combination of his actions, empathy, and commitment to absolute integrity.

4. As essential as the ART is to this activity, it must also be understood that there is also a SCIENCE involved. This must always begin by focusing on your search for agreement. How can this go anywhere meaningful unless both sides commit to, and seek agreement/ meeting of the minds?

5. It is important to aim towards some degree of common ground, where neither side feels he is merely winning or losing.

6. While you can use all your efforts and best intentions towards achieving these necessities, one can never control what others do or how they may behave. Therefore, it is important to proceed with ingenuity and absolute integrity.

7. Listen effectively, and view needs from the eyes of the other party. Only when there is a focus on empathy can progress be made the way you desire.

8. Remember that things are rarely simply black and white! Effective negotiating requires mastering the various nuances.

9. You must have a certain degree of clarity and consideration, if you want to end up with a contract where both sides feel resulted in a fair and reasonable manner.

10. Is your energy level maintained at a the highest possible level, in a positive, meaningful and significant manner? Lethargy and negativity are generally the cancers to successful negotiations!

The better you understand what negotiating involves, the more effective you will be. The combination of a variety of skills, perceptions and attitudes, used in a synergistic manner, will usually get you to the point you wish to be.

Is It The Message, The Messenger, or How It's Communicated?

Have you ever wondered why some speeches or speakers are so much better received than others, even when the message often appears or seems to be so very similar? (This is true both in terms of public speaking, as well as one - to - one communications!) Why is it that the same context, content and ideas may be covered, yet the audience receives certain speeches so much better and more warmly than they do others? After giving many hundreds, if not over a thousand presentations, training sessions, one - on - one presentations, etc., over the last three decades, as well as having attended and participated in innumerable others, I have pondered and wondered what the determining consideration generally is. Is the main factor the speaker, the subject matter, or how it is communicated that makes the big difference, or some combination of all of these?

1) The message: Although the subject matter might be the same or very similar, is your message getting through the way you would like it to? How clearly are you making your main point, and is your emphasis in line with the group's heritage, needs, priorities and perspectives? What precisely is the message your audience is going to be walking away with? Have you effectively delivered your message so that your call to action will be the take - away? Can you deliver a jingle - type, simple and easy to understand message that others will both understand, take to heart and truly care about? What might others be doing either more effectively or I with more impact, that you might learn from, while still maintaining and preserving your individuality and integrity? How might doing this strengthen your message?

2) The messenger: Sometimes your message fails to take hold because of something to do with your style, delivery, or how others perceive you? Are you considered an individual of absolute integrity, or is there some aspect of your personality, persona, or delivery than either turns others off, or at least doesn't make them like either you or your message? Have you reviewed your body language, posture, eye contact, or speech nuances, and compared these with speakers who appear to be far better liked or accepted?

3) How it's communicated? Are you getting your point across the way you want to? Are you using too much, or too little humor or anecdotes? Are you connecting sufficiently with your audience, and getting them involved and participating actively? What will be their take away from the presentation? Are they grasping your point or main message? What might you do differently or better?

Only when one considers the message they are conveying, how you appear or seem to others, and the actual presentation/ communication itself, will you get the optimal results and responses. If you want to give the best speech or presentation you can, and thus, truly connect, view yourself objectively, as others might.

Is It Your Time To Buy A Home?

As a New York State Licensed Salesperson in real estate, I am often asked by individuals considering purchasing a home, whether or not this is the right time (or at least a good time) to buy a home. While there is no simple answer to that question, the answer is to a large degree dependent upon individual circumstances, including needs, employment, credit rating, etc.

1. As we all know, the United States (as well as almost all the rest of the world) had been undergoing a prolonged period of economic distress that has not been this widely witnessed for eighty years, followed by considerable improvement in the past few years. In many parts of the country, house values had plummeted, while in others there had merely been a large reduction in market value. With predominantly fair prices for houses, combined with record low mortgage interest rates, a home buyer will have a significantly lower month carrying charge than in the recent past (and of course, if and when mortgage interest rates move up in the foreseeable future). However, today's real estate market is also different for buyers in the sense that most lending institutions are being far more strict about down payments (most requiring 20%), and are requiring significantly higher credit scores to qualify for a mortgage. In addition, house appraisers are far more conservative in stating values, which means that the 80% that the bank is willing to loan is based on a lower home price, and thus, could, under certain circumstances, require an even larger down payment by the buyer. However, if all these conditions are met, the buyer is operating in a Buyers Market (more sellers than qualified buyers), and thus is in a fairly good negotiating situation. Recently, some greater degree of flexibility in home mortgage lending has been occurring.

2. Does the buyer have a home he is selling at the same time? If he does, he should realize that when his present home sells for more, so will the home he is purchasing, so look at the big picture!  However, the trade- off of also buying another home for less money combined with the low mortgage interest rates will generally be advantageous to the individual.

3. Many potential buyers today are wary because of the market, and their fear of their own job security. Most potential buyers are acting more cautiously, and some are only making offers that even determined sellers are finding insulting because there is a "want to get it at a steal" mentality. When determined sellers and qualified buyers both look realistically at the market place, and don't take a what was type of attitude, buyers are often doing quite well.

4. Is the potential buyer looking at this purchase from a long- term or near- term basis? While nobody can know for sure how long this downturn will continue, most consider us near, if not at the low point. Individuals who purchased homes three to five years ago have seen their houses values drop, but others who have lived in their homes for much longer still have tremendous equity in their homes. Most experts still believe that houses are good long- term assets, because they historically have out- performed the inflation rate. For those looking short term, there is always more risk!

5. Because the real estate sales market had slowed, in most areas, the rental market has seen higher occupancy rates. With the ever - changing  home prices and mortgage rates, combined with the fact that personal real estate is still one of our few substantial tax deductions (the interest and real estate taxes are deductible), in many circumstances, it is actually more economical to buy than to rent. However, like everything else in real estate and in this economy, this varies dependent on area of country and the individual's circumstances.

Is it time to buy a home? It all depends on your qualifications, credit, personal circumstances, needs, and your objective, but for many qualified people, this is a great buying opportunity!

Investments Using Real Estate

There is almost no one that does not realize that there are investment possibilities using real estate. Some people will tell you that they invest in real estate because they own a home, and they expect it to increase in value over time. While historically real estate has, in fact, increased in value over time, there have been periods where that has not been the case. When it comes to our homes, we should only look at them secondarily as possible "hedges" against inflation, over the long haul, but primarily we should consider where we live to be our residences, and the places of habitation, where we live, and that hopefully, over the longer haul, will at least maintain its value in relationship to inflation, etc. For example, people who have purchased homes, in any three to five year period, may see the market value of their houses fall. While most of us believe that will be "corrected" over time, it is important to stress that we should not look at our personal residences as short- term investments. Others have shied away from real estate investing because they felt they could not afford the amount necessary, while others have often improperly bought investments with the intention of "flipping" them in a relatively short period. There are numerous ways, in fact, that one can, and the appropriate individuals should, consider investing in real estate.

One of the most obvious methods of investment is to purchase a property or properties, and then rent them. Those considering this option must realize that there are risks involved, as well as positive possibilities. The positive possibilities include certain scenarios. One such scenario is buying a house or condominium at a very reasonable price, and being able to rent it out. In some situations, it is possible to generate a positive cash flow, meaning collecting more rent than the amount expended. One should remember however that there is also something known as the opportunity cost of money, which compares what might have been made if the money used, for example, for a down payment, were able to be invested elsewhere for a greater return. Another consideration should be the very real possibility that a tenant may either be slow in paying rent, or "skip out" completely, that the property go vacant for any period of time thus not bringing any money in while the owner still must pay the carrying charges, etc. In addition, one should figure in the wear and tear, insurance, utility costs, etc. Of course, the owner also gets certain tax advantages including such things as depreciation, cost deductions, and possible profits, as well as the possibility of the property appreciating in value over time. So, as you can see, like in most things, there are pros and cons in that scenario. People using the above scenario should also make the decision whether they will be actively or passively owning this property. I advice speaking to a knowledgeable tax professional so that you fully understand the requirements of each.

Another way to invest in real estate is through a Real Estate Investment Trust (REIT) or as a partner in a Real Estate Limited Partnership. In both these cases, professionals manage the properties, and you are an investor. In most situations, your liability is limited to your initial investment. I recommend doing thorough due diligence on the general partner and/ or manager, as well as discussing all tax ramifications with a knowledgeable tax professional. Potential investors should always be vigilant and remember that there is no such thing as a "sure thing."

Many people have done very well investing in real estate, while others have suffered financial losses. Real estate, like many other things, can often be a value portion of an overall investment strategy, when used in the right set of circumstances for the right person. Real estate is often not nearly as liquid as other forms of investment, so that should also be kept in mind. While for many, real estate is a great investment vehicle (especially over time), and there are often tax advantages (speak to your CPA of financial adviser), like nearly everything else, it is not for everyone!

Is Inflation A Good Thing, Bad Thing, Or Other Economic Confusions?

Economics, economic theories, and political realities often cross paths, and make many people wonder what's going on. We have offered heard about the dangers of inflation, the dangers of recession, and other similar terminology, yet most of us will hear the media, and especially the business media, one day warn of the risk of inflation, and another day cite the lower than anticipated inflation rate as something to be concerned about. There are even different sets of indexes, one that includes core items (whatever that really means) and another that measures the inflation rate including energy costs.

The only thing that most American consumers concern themselves about from day to day, is how these costs impact them. Is their cost of living going up, staying the same, or going down. I have not met anyone recently that has told me that he feels that things are costing him less. At the supermarket, manufacturers continuing their clever "game" of effectively raising prices by keeping prices the same but reducing the package size. Shouldn't pricing be considered for these cost of living indexes the way the unit pricing is required by a lot of states, that is, by showing the cost per ounce, or per serving? Most of us have observed increased costs in milk, most meats, fowl, fish, cans of soda, bottles of soda, etc. Yet, we are being told that there is no or little inflation.

Gas prices are constantly fluctuating, yet the pattern is that prices go up over time, although we are, at least temporarily, witnessing a somewhat sustained period of price drops or stability. Interestingly, while most us would consider this a positive (for example the drop in the price of gas means a savings of about $700 per year for the average American, and those of us who heat by using oil, have saved as much or more than that this Winter alone), many economic analysts state that this has hurt energy companies, etc., and therefore, is not that good! We often complain about how everything seems to cost more these days (think about grocery prices, etc.), yet these same economic gurus state that they are concerned that there is not enough inflation! About the only thing that has not kept pace with these increases is average wages. Many workers are being paid for fewer hours, while others have been laid off. The unemployment rate statistically is about 9.5%, but realistically is more than 15%. Many Americans are either under-employed or unemployed, and this has been going on for so long, that, for many, unemployment benefits are expiring. If these people's benefits run out, the statistics will show a lower unemployment rate, because the official statistics does not count people not collecting benefits. It also does not count individuals who owned small businesses, that had to go out of business, because owners of these types of businesses are generally not eligible for unemployment, While the unemployment numbers are presently down, the number of Americans actively fully employed is not very favorable or positive!

For those of us involved in real estate, we have witnessed near - record low mortgage interest rates, but that has been combined with somewhat stricter conditions to qualify for the best rate. Which is better, dramatically increasing home prices, just keeping up or slightly over - performing the inflation rate, or lower prices? I guess it depends if you are a buyer, or a seller?
 
The bottom line is that statistics are misleading. There is an old saying that the difference between a recession and a depression is, that it's a recession when it happens to someone else, and a depression when it happens to you. It is time for the American public to demand that our government officials stop partisan politics, and realistically address the economy and the joblessness issues, making those the overwhelming top priorities.

All Consultants Are Not Created Equal!

Every year, thousands of corporations and organizations enlist the services of either an individual consultant, team of consultants, or a consulting firm, to address items that their leadership envisions need addressing professionally, by an impartial eye. It is important for each of us to realize that nearly everyone uses consultants in nearly everything they do, such as when we select our Real Estate professional, or financial services specialist. Therefore, whether you use this in your business, your organization, or in your personal life, you should pay attention to those you do business with, or use to either advise you, etc. Unfortunately, however, nearly anyone can represent himself as some sort of consultant, either in a specific area, or in a variety of areas, and while some of these individuals are excellent, and provide a fabulous, valuable service, others use consulting as a rouse to sell some sort of product or service. Major areas that consultants are called in regarding include, but are not limited to: business, financial, fiscal, and budgetary items; strategic planning; event planning, negotiations, coordination and organization; Board training and evaluation; business planning; etc.

1. Your preliminary discussion with any honorable consultant should be a getting- to- know- you type of meeting, and should be free of charge to the organization. Avoid doing business with anyone that won't take this time and effort to assure that you are a good fit for each other (and this applies to businesses, organizations, and in our personal relationships).  Observe whether the consultant listens and asks pensive and examining questions, more than he speaks and tries to sell himself. Do not be overly impressed by fancy brochures and literature, or even elaborate presentations. You should be looking for a consultant that does not try to use a one- size- fits- all approach, but customizes his service directly to your needs and/ or your organization's idiosyncrasies. Don't be overly impressed by fancy rhetoric or techno- jargon, because it often has little true value.

2. When a consultant is used for event services, he should guarantee his services will do several things for your event. Firstly, he should take away the hassles and headaches. Secondly, he should be able to negotiate in all related areas and foresee your needs. He should be someone who does his homework before he begins to negotiate, in order to find out what is needed and what the priorities and objectives of the event are. He should gather historical information, in order to gather am historical perspective and better understand the group's heritage and needs. He should never impose his will, but also stand up for what he believes should be done, and be able and willing to explain why. His negotiations should save considerably more money than the total of his fee and reimbursable expenses. He should fully explain his fee up front, and explain what he will do, how he will work intimately with the group's organizing committee, and make relevant suggestions.

3. In selecting your real estate professional or financial planner, favor the individual that asks more questions than he speaks about, and addresses your needs, priorities, concerns, and how he will do things somewhat differently, to best serve you. Many years ago, I trademarked my philosophy as it relates to this, which is, I'll tell you what you need to know, not just what you want to hear. TM 

4. Beware of any consultant who makes too big a deal about making governance changes, in order to address systemic problems and challenges facing the organization. While in a mostly healthy organization, certain governance models might work better for a specific group, governance should only become a priority during a healthy or relatively healthy stage, and not when there are other challenges. These governance recommendations are usually followed, in gradations and steps to follow, by meetings that you are charged for consultant's time, training sessions (also at a charge), and often with a beautifully prepared governance manual, that often is less valuable to the stability and well being of the organization than the paper it is printed on, etc.

Always ask a prospective consultant about his fees, thoughts, methods, approaches, and what he feels he might be able to do for you, before you agree to his contract. Many organizations (as well as individuals) have cost themselves dearly by not carefully considering all of the ramifications. While many consultants are great and provide a wonderful service, like in everything else, there are always some "bad apples." Understand that you are hiring that consultant!

You Have To Know What You Want!

How can anyone achieve anything unless and until they know, in their heart of hearts, what they want to achieve, and what their use motivations are? Without understanding what makes us tick, it becomes extremely challenging to address whatever is most important to us. Those with meaningful goals begin with a well conceived and thought out plan, and well meaning intentions. The vast majority of individuals stroll through life, often working hard and believing they are doing their best, but never taking the time or making the effort to focus upon one's personal objectives, desires, and intents. Let's all commit to taking the time to look internally on what we want to achieve, because how can we get what we want if we don't know what that is. This concept is not solely about our personal development or inner - self, but also applies directly to the actions we take in all our endeavors. For example, one of the greatest challenges that many potential home buyers face, is their own lack of focus and understanding on what they are looking for, what they can achieve, and whether they think they'd be happy there!

1. Each of us have a different set of things that motivate us to action and direction. Statistics and studies consistently indicate that most people let their routine become a rut, because they are often unwilling, incapable or not prepared to focus on what would make them happy. How is it possible to become a success, if you don't identify what that means to you? No one ever achieves to his personal potential attempting to accomplish someone else's  concept of a goal or success. One of the most consistent failings is that far too few people ever take a sufficient amount of time or pay enough attention to what they want, what their goals are, and what that represents. If you want to buy your home, it should be about what works for you, and not about what your parents or any other well - wisher may instruct!
 
2. Once we create goals, then and only then, we can begin proper planning in a meaningful direction. Few people dedicate specific planning time and then combine that with creating an action plan to get where we want to go. Personal planning motivates us to set goals that will drive us in the direction we need to go.

3. What are our intentions, and how will we best serve our needs? Do we simply hope for the best, or are we proactive and follow organized steps to permit us to be in a position to achieve what we want to achieve? Never merely count on others to look out for our best interests, because the reality is that no one else will or should ever care about us as much as we should. Understand our intentions, and make sure that what we want is worth wanting, and will make us happy, not merely in the short term, but rather set us on a positive personal course.

What do you want for you? Have you the combination of goals, commitment to planning, and good intentions? Will you proceed forward and propel yourself to take the steps that best serve your needs?

Can I Sell My Home?

As a New York State licensed real estate salesperson, a Real Estate Cyberspace Specialist, and an Ecobroker, I am asked all the time, "Can I sell my house?" Generally, I answer that any house can be sold, if it is priced correctly, and one will generally receive his best offer in the first few weeks after a house is listed on the market. As a Certified Buyer Representative (CBR), buyers often ask if a house is priced properly, how much wiggle room there is, and how quickly a specific house might sell, as well as how long it has presently been on the market.

In all economies, houses sell. Obviously, there is quite a bit of price fluctuation, and there are areas where the real estate market is stronger, and others where the housing market is weaker. The key, however, to marketing and eventually selling one's home, is properly pricing it from the very beginning. Too many homeowners list their homes with whichever real estate agent suggests listing the home at the highest price, yet that is probably the worst strategy in most cases. If a homeowner truly wants to sell his home, the price asked for the home should be based on a tightly and properly prepared, in-depth, professionally formulated Comparative Market Analysis, known commonly as a C.M.A.

A Comparative Market Analysis evaluates homes in very comparable areas, nearby, in the same condition, with similar attributes. It should look at homes on the market presently, houses that have sold recently (in a weaker market, only prices of houses sold in the last approximately six months should be considered), and houses that the listing expired, which means did not sell during the listing period. Homeowners should understand that today most buyers begin their search on the internet, and the majority of them do a search by area and price range. Therefore, pricing a house at $799,999 will often appear in many more searches than, for example, pricing it at $800,000.

When pricing one's home, and doing accurate comparables, the clever agent will recommend pricing at or below the median price in the group of homes on the market in similar condition, etc. The key to selling one's home is most often statistical, which means the more "looks" at the house, the better the chance of it selling. In general, if a house is getting few looks, the listing price is too high for current market conditions. If the house is getting looks but no quality offers, either there is some "sticking point" that is causing resistance, or the house "does not show well."

A few years ago, I had a quality, pre - approved client that I was helping as a buyers' agent. This couple had specific needs, and had more than twenty percent to put down, excellent credit rating, and was motivated. The house they were interested was a lovely house, but had certain limitations. The sellers listing price was $879,000 although nothing on the block ever sold for more than $828,000, and the one house that sold for that price, was a new "build," and was sold in a stronger housing market. Realistically, this house should have been sold for somewhere in the low $800,000 range. After several offers, my client offered his final offer of $820,000, and the buyer would not come anywhere close to that price. In my opinion, it is doubtful, in the present market, that there will be any other offers nearly as high. The bottom line is that house remained on the market for a considerable amount of time, and continued to be listed at $879,000. Eventually, the house did sell, but at a price lower than what my clients offered more than 6 months earlier. Whether it was an unrealistic homeowner, or a weak or poorly informed real estate agent, the seller certainly did himself no favor, and unfortunately, this occurs quite often.

Houses sell in every market. Yes, sometimes it might be  more difficult to qualify and get a mortgage, and banks may be more conservatively appraising houses values in terms of how much mortgage to offer. Yet, if one has a decent financial record, has twenty percent to put down, and is realistic, houses sell, and are a good deal.NEVER over - generalize how you should proceed or price a home. The best rule is to speak frankly with your quality, selected real estate professional, and price it right from the start. Discuss how changing scenarios might impact the marketplace, and be prepared so you can seamlessly adjust your strategy, including pricing, philosophy, degree of flexibility, ertc.

Making Affirmations Work For You

Many wise men have made similar statements about the power of positive thinking in terms of getting things accomplished. In fact, the unifying thought of all of these statements is basically that one can either think they can do something, or think they cannot, and either way they will almost always prove themselves correct. Every year, many millions of dollars are spent by individuals who wish to improve either themselves or their "lot in life," and take various versions of positive thinking courses and seminars. While positive thinking undoubtedly improves success rates and efficiency, one of the greatest techniques for enhancing one's positive attitude, and thus their success, is using Positive Affirmations. Since perhaps the single biggest reason we fail to achieve to our potential, is our personal lack of belief that we will succeed. Regardless of whether you are merely trying to be the most successful you can be, the happiest, or achieve one particular objective, using positive affirmations invariably enhance the possibilities.

Consider how affirmations impact those wanting to sell their home. Those that begin the process believing that they will get the best results, and with a quality bond with their selected real estate professional, and who are led by what they need to do, and use affirmations to consistently drive themselves to do so, position themselves to get the best results the market conditions (and realities) will permit!

Affirmations are positive statements that have special meaning to the individual. They are described as affirmations because unlike other statements, these statements should be made all from a positive point of view, using entirely positive wording. So, for example, if someone wanted to break their smoking habit, they would not say, "I'm not going to smoke anymore." Rather, their Affirmation might be worded, instead, "Since I am smoking- free, I breathe clean, refreshing area, and have more positive energy." As you might notice, there is no mention of the intent to stop smoking cigarettes. Rather, the affirmation is stated from the point of view that the action to stop has already occurred, and the affirmation sees and discusses the benefits. This is done to create a positive vision that motivates the speaker to take definitive action.

To understand further how affirmations can assist one in taking action to improve or encourage a specific action or course of action, or to get someone to expand his "comfort zone," let's assume that an individual is very uncomfortable speaking in public. The usual self talk that people use would be "I want to be a better speaker," or "I am going to be a better public speaker." However, when using Affirmations, a suggested statement might be something like, "I enjoy the excitement of getting in front of a group, addressing them, and motivating that group to listen to me and my point of view, and then take action." Do you see the very important difference in the way these statements are structured?

Many individuals have told me prior to one of my seminars that they can't do affirmations because it seems too strange, odd or phony to them. I tell them to try the following exercise for a week, and see the changes it will make in their life. Think about ten things you'd like to do better. Write down ten Positive Affirmations. Commit to read these Affirmations at least three to five different times during the day and night, and each time repeat each affirmation at least five time. Read these in front of a mirror. Be sure that the Affirmations are items that are truly important to you at this time. Observe the changes in the way you view things, go about things, approach things and do certain things.
Those who commit to Affirmations will see numerous life changing improvements, simply because they commit to them fully, and believe they can.

Home Buyer Guidelines & Checklist

As a Licensed Salesperson in New York State, I am constantly coming into contact with individuals with varying degrees of interest in the house purchasing process, from those actively seeking a new home (or first home) to those who are merely curious. This article will address the needs of those who are seriously interested in purchasing a home.

Firstly, a buyer should realize that it is his choice and option as to what type of agent to deal with. One type of agent is known as a Seller's Agent. This type of agent has been "enlisted" by the seller of a house to represent his interests in the sales process. By definition, a seller's agent owes the seller the following fiduciary duties: undivided loyalty; confidentiality (non disclosure of any personal information regarding the seller); full disclosure; of course, reasonable care; obedience (to the client's- i.e. the seller's legal wishes and needs); etc. While a seller's agent must still be honest, fair and act in good faith, and disclose any material issue that affect the property's desirability, this type of agent's primary allegiance is to the seller. This type of agent may also at times be referred to as a Listing Agent.

A Buyer's Agent is "hired" by the buyer to represent his interests. This type of agent actively negotiates in the best interests of the buyer. He has the same types of obligations and allegiances to the buyer as the seller's agent has to the seller. While a seller's agent represents the seller and his interests primarily, the buyers agent has an allegiance to the buyer, and does not represent the seller.
A Broker's Agent is one that cooperates either with the listing agent or the buyer's agent, while not working for the same firm as either the listing agent or buyer's agent. This type of agent does not have an allegiance or direct relationship to either the buyer or seller. Because of this and the fact that the buyer or seller do not give instructions directly, this agency situation does not involve any type of "vicarious liability" (direct responsibility for actions of another), and therefore either the buyer's agent or listing agent will have the responsibility regarding liability for this agency type.

The last type is a Dual Agent, who is permitted to represent both the buyer and the seller, as long as both give written and informed consent. Obviously, this type of agent will have limited fiduciary duties compared to other forms of agency. Dual agents must fully explain any possible conflicts that this might present, and the steps and care that will be taken. Some Brokers, in order to avoid the appearance of conflict, use a situation known as Dual Agents with Designated Sales Agents, with a separate agent handling the buying and selling aspects and interests.

Buyers must also begin their search by getting pre - qualified (preferably pre - approved) for a mortgage for a specific amount, so as to know what price range they should be searching in. While some buyers appear hesitant to fully confide their information to their Realtor, if that is a concern, then a Buyer's Agent agreement and arrangement is the way to go. Truly interested buyers should ask their agent to provide them with "comps" of houses that have recently sold in the area, as well as on the market presently, so that any offer made will be realistic. While it is acceptable to give a significantly lower than asking price for a house that appears overpriced based on comparable houses, doing this will fairly priced houses will generally result in a "souring" effect, if the buyer is actually truly interested in a particular property.

Buyers should understand that a Seller, once he receives an offer in writing, can either accept the offer, reject it, or propose a counter- offer. Then the procedure begins again. Buyers should consult their professional agent for suggestions as to the best way to proceed.

Price Is Always Important, But Generally NOT The Only Issue!

Especially in challenging economic times, people seriously consider how much things cost and what the price is. When I was the Chief Operating Officer of a natural products manufacturer years ago, I remember that our price point was a serious consideration, in order to best position our products optimally in relation to others. As a Licensed Salesperson in New York, I have sometimes observed the attention paid to the amount of commission, often rather than the more important consideration, which should be, to get the best available price, in the shortest period of time, will the least amount of hassle. 
 
However, while pricing and costs are important factors, when it comes to conferences and conventions, a far more important factor is almost always perceived value. In my three decades of hotel negotiations, event planning, and conference and convention planning and operations, I have witnessed repeatedly, situations where organizations over-emphasized only the price that participants would pay. In doing so, they often neglected creating a program and agenda that would attract attendees. Sometimes even more importantly, these organizations did not sufficiently emphasize the attendee's conference experience, and when that attendee went "back home," rather than being the organization's best ambassador, he reported a less than stellar experience. The almost laughable, if it were not so incredibly short-sighted, part of this is that the amount of "cost savings" that these organizers implemented, had little impact on attracting significantly more attendance. However, at the same time, this reduction created financial risk for the organization and an inability to provide a superior attendee experience. Organizers must recognize that a small price decrease in the fee for attending a conference often has little real impact on attendance. If it works at all, it only works in local events, where there are few expenses incurred by attendees besides the registration fee. However, many conferences require travel and hotel costs, and those costs often "dwarf" the registration fees.In addition, if an organization is going to lower its registration fee, by how much will they reduce it? How much is a significant enough reduction to encourage additional attendance? What will be the overall impact on what conference organizers can do, when revenues are reduced?
I have heard numerous conference and convention organizers state that the reduced revenues will be offset by increased attendance. However, what these organizers often under-estimate is the true cost to the conference per attendee. If it takes more attendees to generate the same revenue, and registration fees are reduced by, for example ten percent, how much will attendance have to go up to offset the drop in revenue combined by the true cost per attendee? In many cases, a ten percent registration fee reduction will require close to a twenty percent increase in attendance and registrations.Unfortunately, like many things done by many organizations, their conferences are often run by well-meaning individuals, who are, nevertheless, less than professional conference and convention coordinators. Organizations must analyze both the short term and longer term ramifications of addressing solely the registration fee issue, without, at the same time, analyzing the perceived value aspect. It is essential that organizers fully understand all aspects involved, including, especially, understanding their niche or target market.

In the real estate transaction process, or similarly in purchasing and transacting investment vehicles, it is often counter - productive to overly focus solely on the sales charges or commissions, rather than on the quality of services provided, the value of those services, and the net (or bottom line). 

Remember that while price has a one - time or single effect (or impact), the quality of service and other considerations (in a product, for example, the quality and reliability) are often far more important, in the longer - term. Look at the bigger picture!