The 15 US Cities That Are Driving The Future (Provo/Orem is #2, Salt Lake City is Number #5)

HARRISON JACOBS - Business Insider

JAN. 7, 2014, 3:37 PM

The American economy is being reshaped along the booming industries of technology and energy, according to new rankings of America’s Best Performing Cities by the Milken Institute.

In the 2013 rankings, thirteen cities defined by Milken as tech hubs made it into the top 25, while nine could attribute their impressive growth to the energy industry, notably the shale and natural gas renaissance. 

Milken's ranking is based on data from both long- and short-term growth in jobs, wages, salaries, and technological output.

#15 Denver–Aurora–Broomfield, Colo.

MomentsForZen/Flickr

This metro area has a diverse high-tech industry that mixes in telecommunications, aerospace, manufacturing, and energy research. The city does so well partially because of its attractive business climate and friendly government.

The city’s Business Incentive Fund makes it an attractive place for companies like Southwest Airlines (which just opened a new pilot and flight attendant base) and SCL Health Systems (which moved its headquarters to Denver). The Fund’s efforts will result in over 1,600 jobs and $6 in direct fiscal benefit over the next five years.

Read the full city profile at Milken »

#14 Nashville–Davidson–Murfreesboro–Franklin, Tenn.

Jim Davenport/Flickr

The Music City has something new to sing about, namely some serious job growth  An increase in automobile production added nearly 4,000 jobs in 2012, while tourism reached a record high in 2012. The city has experienced a cultural renaissance thanks to the opening of the Music City Convention Center, the Omni Hotel next door, and an expansion of the Country Music Hall of Fame, with an of 4,100 jobs in restaurants and bars in 2012.

Read the full city profile at Milken »

#13 Raleigh–Cary, N.C.

Steve Rhode/Flickr

Raleigh has a large educated workforce, strong high-profile universities, and low operating costs for businesses. The city has experienced an expansion in the tech industry, fueling growth in a number of other areas. Recently, financial services firms like Fidelity Investments and Credit Suisse have built bases in the area, as well as MetLife, which has plans to build new global technology services hubs.

Read the full city profile at Milken »

#12 San Antonio–New Braunfels, Texas

Stuart Seeger/Flickr

Home to one of the largest medical facilities in the nation, San Antonio has seen strong job growth from military medical operations. Ambulatory health-care services created more than 12,000 jobs over the last five years.

Medical isn’t the only thing driving development. San Antonio is also home to the largest oil and gas development in the world in the Eagle Ford Shale. Record drilling levels and high-yield wells are pumping new jobs into energy and related sectors.

The city was ninth in job growth over the last five years. A nationwide restructuring of military bases could provide lead to many new jobs.

Read the full city profile at Milken »

#11 Charleston–N. Charleston–Summerville, S.C.

Larry Myhre/Flickr

Charleston is quickly becoming an aerospace hub thanks to Boeing, which recently announced a $1 billion expansion that will create 2,000 jobs over the next eight years. 

The state is helping fuel growth as well, as it agreed to provide incentives for upfront expansion costs for Boeing’s manufacturing complex. That would create additional jobs, putting the total at 8,000. The state is also updating and improving the port’s infrastructure so that it can accommodate larger container ships.

Read the full city profile at Milken »

#10 Greeley, Colo.

David Jones/Flickr

The Niobrara Shale has created a boomtown in Greeley, Colorado. Noble Energy, which just completed a 65,000 square foot headquarters, is expected to invest another $8 billion in the city over the next five years. In addition to the natural gas and oil boom, wind energy has provided another growth area. Vestas Wind Systems has plans to expand its workforce in Greeley.

Read the full city profile at Milken »

#9 Boulder, Colo.

Zane Selvans/Flickr

The University of Colorado may be Boulder’s top employer, but the city has one of the strongest tech sectors in the nation. Companies like IBM, Level 3 Communications, and Oracle all have strong operations in Boulder and the city ranks first in the country for density of high-tech startups. 

Expect growth in clean tech, medical devices, aerospace, and health care over the coming years.

Read the full city profile at Milken »

#7 Houston–Sugar Land–Baytown, Texas

NASA

Houston’s growth has been fueled by the boom in oil and gas exploration. Shale gas exploration in particular is creating jobs in multiple areas. It’s lead to 10,500 job increase in professional and scientific services while administrative, machinery, and manufacturing have also seen job gains. 

Job growth is the seventh strongest in the country over the last five years, largely because Houston’s energy infrastructure is only getting more developed. Multiple companies are building export terminals, fractionaters, and ethane crackers. Expect a huge increase in engineering and construction jobs as a result.

Read the full city profile at Milken »

#7 Dallas–Plano–Irving, Texas

Robert Hensley/Flickr

Dallas has one of the most diverse economies in the U.S., with strong establishments in tech, aerospace, telecoms, and financial services. Population growth is strong, housing sales are rising, financial services added 5,000 jobs from 2011-12, and employment at corporate headquarters increased by more than 4,000 works over the last five years.

Look for Dallas’s job growth to get even stronger as American Airlines, Southwest Airlines, and Lockheed Martin look to expand their presence.

Read the full city profile at Milken »

#6 Seattle–Bellevue–Everett, Wash.

Ryan Carver/Flickr

Seattle has benefitted from a resurgence in commercial aircraft manufacturing, adding 7,000 high-skilled manufacturing jobs in aerospace from 2011 to 2012. With emerging nations getting more prosperous, commercial aircraft will continue to grow, boosting business for Boeing and its 82,000-person Seattle-based workforce. 

Seattle is not a one trick pony either. The city ranks fifth in tech industry concentration with both Amazon and Google breaking ground on massive new campuses. The expansion of the workforce has also increased the demand for housing, rising property values, and restoring construction jobs.

Read the full city profile at Milken »

#5 Salt Lake City, Utah

Photo Dean/Flickr

Job growth over the last year in Salt Lake City is up to fourth in the rankings. It’s a sign of how well this city is doing, thanks to the recruitment of numerous financial services firms (including Goldman Sachs), as well as the healthy growth of start-ups coming out of nearby universities.

The Utah Science Technology and Research Initiative (or USTAR), founded by the University of Utah, has become a leader in technology-based development. The healthy growth has created a strong recovery in housing and commercial construction. Outdoor tourism has continued to expand as well, bringing in jobs in leisure and hospitality.

Read the full city profile at Milken »

#4 San Jose–Sunnyvale–Santa Clara, Calif.

Rainer Hungershausen/Flickr

With all the talk about Silicon Valley, one might think that San Jose-Sunnyvale-Santa Clara would hold onto the #1 ranking from last year, but it appears the area is a victim of its own success. Rising housing and business costs are slowing growth. Nonetheless, the area remains the most impressive technology neighborhood in the world.

With a powerful ecosystem of startups, established companies, universities, and investors, San Jose-Sunnyvale-Santa Clara is able to maintain its tech dominance. The talent pool in the area is deep and ultimately that’s what keeps attracting companies.

Read the full city profile at Milken »

#3 San Francisco–San Mateo–Redwood City, Calif.

Curtis Fry/Flickr

With entrepreneurs and tech companies moving from Silicon Valley to the city proper, San Francisco has seen serious growth in GDP (second in 2012) and jobs (third in 2012) in recent years. The influx of residents has risen housing costs and jump-started the construction industry.

Read the full city profile at Milken »

#2 Provo–Orem, Utah

JPStanley/Flickr

Provo has had a steady climb in the rankings, jumping from seventh to second this year. With the city capturing the top ranking for job growth in 2012, Provo’s climb looks set to continue. 

The city has a thriving tech sector, anchored by Brigham Young University and software company Novell. Provo is also one of three U.S. cities with Google Fiber, the company’s superfast fiber optic service, which will continue to make Provo an attractive place for tech companies. Add in the new data storage center being built by the National Security Agency and you have a recipe for strong job growth.

Read the full city profile at Milken »

#1 Austin-Round Rock-San Marcos, Texas

Phil Ostroff/Flickr

The top spot goes to the metro area of Austin-Round Rock-San Marcos, a rising technology center. Austin came in second with job growth over the last five years, due in large part to a diversified technology base. Homegrown tech companies like Dell, National Instruments, and Flextronics complement incoming companies like Apple and IBM (which both now have large bases in Austin), as well as start-ups coming out of the University of Texas Campus.

The city is extremely business-friendly with a low tax, low regulation environment that makes it attractive to out-of-state firms. All of the tech hustle and bustle has led to an influx of young professionals, which has led to a boom in construction. 

Austin looks to maintain its high-flying output over the next five years as it focuses on clean technology, data centers, digital media, biosciences, and other industries.

Read the full city profile at Milken »

Read more: http://www.businessinsider.com/best-performing-us-cities-of-2013-2014-1?op=1#ixzz2pwGTI7BJ

Why today’s homebuyer needs a real estate agent more than ever...

Last summer I got an email from a local real estate attorney who wanted to buy a house. He’d just gotten engaged and wanted to save some money by representing himself.

This attorney wanted to do all the work an agent would do to find and buy his first home, and get paid a commission for his work. I explained to him that the commission is payable to the listing agent who agrees to pay a portion of it to the Realtor representing a buyer.

Usually, if there’s no buyer’s agent, the seller’s agent gets the entire commission. Some agents will accept a reduced commission for representing both parties. The seller saves some money that way. Sometimes the savings get passed along to the buyer.

I get several emails each year from homebuyers, usually first-timers, who want to know how they can get a real estate license so they can save money on the purchase of a home. They find me through my blog, and apparently decide that I am too scary to work with, but not so scary that they can’t ask me a question or two.

I always let them know that they do not need a license to buy a home, and that they do not need a real estate agent. After I explain to them how to get a license — and that they have to work through a broker, who generally gets a percentage of each commission — they start to let go of their dream of being paid to find their own home.

The buyers who want to do this are usually planning on buying a home that costs $300,000 or more — higher than average for a first-time homebuyer in this market — and planning on saving at least $9,000 by doing the work themselves.

I decided that helping the attorney would be an excellent learning experience for me. So I agreed to help him buy a house without a real estate agent if he would share his experiences with me so that I could learn how to better help my buyers and sellers.

Just this week I got an email from a buyer who wants to save money by working alone instead of with a real estate agent. He started this endeavor by asking me, a real estate agent, questions."

He started his search for a home the next weekend. I advised him on how to ask for a price reduction, or have the seller pay closing costs, equal to roughly what the listing broker was expecting to pay out to a cooperating broker bringing a buyer to a sale.

I told him not to use the contracts that lawyers use, but to use the contracts that real estate agents use. I advised him to write the price reduction into the contract, and explained to him that agents do not have to cut their commissions.

If I were representing a seller who got such an offer from an unrepresented buyer, I told him, I would certainly consider cutting my commission — and I suspect I would get a little pressure from my sellers to do so.

The following Monday, he emailed the wording of the first offer he planned to submit.

I made several suggestions on how to make the offer better and more competitive, so that he would have a chance in a multiple-offer situation. We shortened the inspection period and removed some additional contingencies he had put into the offer that were unnecessary.

He wrote offers on five houses where he was competing in multiple-offer situations. None was accepted. Most buyers would have given up even if they had been working with an agent. But this guy was on a mission.

There were no other offers on the home he finally bought. He spent many, many hours looking at houses, doing research and juggling appointments with listing agents.

When he was done, he told me that if he did not love real estate and have a passion for it, he never would have had the patience or taken the time to work without an agent. He could have made more money than he saved, he said, if all the hours he’d spent searching for and negotiating a home purchase had instead been spent working his job as a lawyer, generating billable hours for clients.

One of the biggest challenges he had was scheduling appointments to see the houses, and seeing the home before someone made an offer. He found some of the real estate agents to be helpful. Others clearly did not know what they were doing, and that made it harder for him to buy the house.

The house he ended up with was overpriced and, as a result, did not get any other offers. He was able to buy the house for slightly less than market value.

When I complimented him on his negotiating skills, he told me why the seller accepted his offer. It came down to the buyer being in the right place at the right time. But he also did his homework, and knew the approximate value of the house.

He saw that it was overpriced, and was not afraid to make an offer that was significantly less than asking. It is often very difficult to convince buyers to make a fair offer that is significantly below the asking price.

This lawyer got no advice from me on how much to offer, which houses to make offers on, or which ones to look at. But I did tell him which websites have the most accurate information, and the greatest number of homes that are really for sale.

I gave him a little guidance on strategy, business practices and how to use Minnesota real estate contracts. He tended to write offers without considering the seller at all. I encouraged him to get as much help from his lender as he could.

I think it was easier for buyers to represent themselves when it was a buyer’s market. Multiple-offer situations are very common today, and he lost every time he competed in such a situation. Today’s buyer often has to compete with experienced agents, and may be at a disadvantage.

Just this week I got an email from a buyer who wants to save money by working alone instead of with a real estate agent. He started this endeavor by asking me, a real estate agent, questions. So I know we still have some credibility.

First-time buyers, in particular, seem to feel as though we get paid way more than we should, and some are not so sure we are worth it. I advised him that if he does not want to work with agents he should also consider approaching homeowners who are not working with agents.

Earlier this week I went to a closing for a buyer who had purchased his ninth home and would not even consider doing it without an agent.

He asked for my advice every step of the way, and made it clear upfront that he was looking for an agent who has more experience than he does.

That is what my clients are paying for. And that’s all the attorney who wanted to do the agent’s work himself needed from me, too.

Teresa Boardman is a broker in St. Paul, Minn., and founder of the St. Paul Real Estate blog.

- See more at: http://www.inman.com/2013/12/12/why-todays-homebuyer-needs-a-real-estate-agent-more-than-ever/#sthash.6ft6W4Ex.dpuf

Skyrocketing Rents Cause 'Worst Rental Affordability Crisis' In U.S. History...

As rental demand grows, soaring rents are taking a bigger bite out of households’ pocketbooks. 

About half of renters spend more than 30 percent of their income on rent, up from 18 percent a decade ago, according to newly released research by Harvard’s Joint Center for Housing Studies. Twenty-seven percent of renters are paying more than half of their income on rent. 

"We are in the midst of the worst rental affordability crisis that this country has known," says Shaun Donovan, U.S. Secretary of Housing and Urban Development.

Rising rents mixed with a stunted wage growth has created an affordability problem, the study notes. Between 2000 and 2012, real median rents rose nationwide by 6 percent. However, over that same time period, the real median income of renters fell by 13 percent. 

A shortfall in affordable units is particularly troublesome as low-income renters struggle to find a place, the study notes. 

"Over four years, [there’s been] a 43 percent increase in the number of Americans with worst-case housing needs," says Donovan. "Let's be clear what that means: They're paying more than half of every dollar they earn for housing."

Young professionals are also turning to renting and finding higher rents to be a hurdle to getting ahead. Many have plans for home ownership one day: Nineteen out of 20 people under the age of 30 say they intend to buy a home in the future.

"There is no question that the will toward home ownership remains there — [the problem is] the way,” says Eric Belsky, director of Harvard’s Joint Center for Housing Studies. However, rising home prices and mortgage rates, high student loan debt, and tightened credit is holding many back and forcing them to continue to rent. 

Source: The Harvard Joint Center for Housing Studies and “Skyrocketing rents hit 'crisis' levels,” CNBC (Dec. 9, 2013)

6 ways to do Christmas for the neighbors

While the Christmas holiday can bring cheer and added love to our families, it can also be a time of stress. Sometimes this stress can come from the expectations we place on ourselves regarding giving gifts to our neighbors. These people are friends and we want to show our affection. But in many areas the traditional neighbor gifts have gotten out of hand and, instead of bringing the holiday spirit into homes, are reasons for stress and lost expectations.

Following are ways to show love toward neighbors while still ensuring our priorities toward our families are paramount during the holiday season.

Large or small?

A few months after moving into a new neighborhood, some friends of mine were surprised to receive a large holiday fruit basket from their neighbor. They worried what the holiday gift-giving status was in their new area and the impact it would have on their budget. But their worries were needless.

Just because someone gives a large gift doesn’t mean you have to reciprocate with something of similar size or value. True friends don’t measure friendship by the size and quantity of gifts. Before the holiday starts, set a budget for neighbor and friend Christmas gifts and refuse to let expensive received gifts tempt you to raise it.

If you are an individual who shows love by giving large, expensive gifts to your neighbors, consider holding back if their budgets don’t match your own. Remember the reason you are giving is to show affection, not because you want others to feel uncomfortable due to their inability to reciprocate in a similar manner.

Homemade or store-bought?

While homemade gifts can be more personal, they can also take a lot of time to make. If you enjoy making crafts with your family, then go ahead with your homemade gift plans. Family time spent creating for others can be a great bonding experience. If, on the other hand, you only make such gifts because you think it is expected, remove this added stress from your holiday plans and give something that used to have a price tag on it. Remember, Christmas is an opportunity to focus on love and joy, not a time to attempt to live up to perceived expectations.

A simple card

A simple Christmas card to your neighbors, with a few sentences telling of your gratitude, can be one of the most endearing gifts you give. Maybe you don’t enjoy crafting or perhaps your budget can’t stretch beyond family. Many people feel the lack of love and appreciation in their lives, especially during the Christmas season. Your personalized note, while not costing much in money, may be the most priceless thing your friends receive this Christmas. Don’t underestimate the power of written words of love.

Give to others instead

Let your neighbors know that, while you appreciate their holiday gifts, this year you’ll be using the money you would spend on them and giving it to another cause. Give your neighbor holiday gift fund to your local food pantry, Sub for Santa, Toys for Tots, or other charities that will help needy families enjoy Christmas. Not only is this method easier than delivering gifts to everyone, but you’ll feel good knowing your money went toward helping the needy, as opposed to filling countertops with sugary treats.

Shop for next year

The days and weeks following the holidays are when stores put their Christmas merchandise on clearance. Consider purchasing items that can be stored for next year. Often, a simple Christmas ornament can be a great neighbor gift. Planning for next year’s holiday may seem like the last thing you want to do after Christmas. But 365 days from now you’ll thank yourself for removing the neighbor-gift stress the year before.

No gifts

Accept any gifts your neighbors give you. But if your budget is currently feeling the recession, you’re going through a difficult time, or time is at a premium, don’t feel obligated to give a present in return. A gracious “thank you” can suffice. While you may worry about offending some, remember true friends will love you whether or not you gave them a physical reminder of your relationship. They will respect your priorities of putting family first.

Christmas is a time for enjoying family and friends. Make sure your gifts help you achieve this ultimate goal.

By Elizabeth Reid

For the Deseret News

Published: Monday, Nov. 18 2013 2:53 p.m. MST

Updated: yesterday

5 Things Most People Don't Know About Negotiating

VICTORIA PYNCHON, THE DAILY MUSE OCT. 22, 2013, 4:42 PM 

Many of us often shy away from asking for more and better. More money. Better working arrangements. A larger team. Better access to material resources. Higher fees. Better prices.

Some of us are afraid to ask. Some of us, especially women, have been taught not to ask — we’ve been taught to be self-sacrificing, not self-serving. Some of us do ask, but stop short of asking for what we really want or what we’re truly worth.

But whatever your reason, I probably don’t have to tell you that, by not asking, you’re missing out on more than just money; you’re putting your long-term opportunities and earning potential at stake.

If you’ve ever stopped before negotiating your true market value, read on for five things most people don’t know about negotiating that will change the way you think about asking — and give you a strong leg up when you do.

1. The Negotiation Doesn’t Start Until Someone Says “No”

One of the greatest inhibitions my clients have is risking rejection. This is particularly true in the post-’08 meltdown and continuing jobless recovery from the worst economic calamity since the Great Depression.

Our reluctance to negotiate past “no” is even harder because both men and women miss the key point: It’s not really a negotiation if we’re asking for something we know our bargaining partner also wants. Negotiation is a conversation whose goal is to reach an agreement with someone whose interests are not perfectly aligned with yours.

And let’s be honest, who has relationships with people who always want what we want? No one! So if we want to get what we’re entitled to get or capable of getting, we either have to negotiate past “no” or spend the rest of our work lives being victimized by people who are happy to place themselves and their needs ahead of ours.

“No” signals an opportunity to problem-solve the conflicting and overlapping interests both parties want to serve. Invite your bargaining partner to your side of the table to figure out how both of you can get as much as each of you wants as possible.

2. Your Bargaining Partner Will Be Happier if You Make Several Concessions Than if He Gets What He Thinks He Wants

This is true in the same way that “the earth is round” or “the universe is expanding” or “high heels hurt your feet” are true. In experiment after experiment, social scientists have proven that people are not particularly happy when they get what they think they want. They’re happier when their bargaining partner says “no” a couple of times before he or she says “yes.”

Why? Because negotiators are more afraid of leaving money on the table than they are about getting what they think they want. If I ask for a 5% raise and my boss says “yes” without hesitation, I generally suffer from buyer’s remorse, certain that if I’d asked for 7% or maybe even 10%, my bargaining partner would have given it to me.

This is just one of the many reasons why it’s important to ask for more than you actually want. The other reason to do so is the proven influence of the first number put on the table. Negotiators call that number an “anchor” because it sets one end of the bargaining range and moves your negotiation counterpart in its direction throughout the course of the bargaining session.

If you’ve adequately researched your negotiation partner’s interests and your own market value, you needn’t fear making the first offer, hoping that his or her first offer will be far more than you’re expecting. Waiting for the “other guy” to make the first offer is the mark of a negotiation amateur. Anchor first and anchor high, and you’ll be playing in the big leagues.

3. It’s Never About Money

Though we seldom reflect on our relationship with money, if asked we’d have to admit that money itself — in its tangible form — can neither sustain life nor enhance it. Cash, checks, credit, money orders, and wire transfers cannot themselves be consumed. Grant deeds and lease agreements cannot be inhabited. Stock certificates cannot create warmth in winter nor illuminate the dark of night.

That being the case, there is no relationship and every relationship between any given sum of money and what it can buy. With $20 in my wallet, I can purchase dinner for five at McDonalds or a bottle of cheap Bordeaux at a local restaurant. I can pick up a pair of sandals at Payless; subscribe to Time magazine for six months; rent a surfboard at the beach; fill half my tank with gas; hire a day laborer to do odd jobs on a Saturday afternoon; or, according to my Sunday magazine, save a child in a developing country from starvation. Sentimental pop songs to the contrary, enough 20s can even buy me love.

Before negotiating any deal, take a look at the way in which you “value” money. Is it status you’re seeking? Security in your elder years? Education for your children? A meaningful break from work that takes you to a foreign country or high-end spa? Then ask your negotiation partner what she values, prefers, needs, fears, prioritizes, or desires. You’re apt to find yourself on the same page of value once you stop treating money as an objective measure of worth and start seeing it for what it is — a subjective experience that can make $1,000 act in the world as if it were $10,000.

4. Your Bargaining Strength is All in Your Head

The person who is perceived to have the least to lose is the person with the greatest bargaining advantage. If you’re negotiating—that is, having a conversation leading to agreement, there is always something at stake for both parties.

A good example: Many say the Los Angeles or San Francisco or New York City real estate markets are over-heated and that everything is over-priced. It’s a seller’s market. It seems as if there are an unlimited number of people willing to pay “over asking” and many of them “all cash” for every home or condo or co-op for sale. Doesn’t that mean that all buyers are in a weak negotiating position and all sellers in a great one?

Not necessarily. Every seller is selling for a different reason. A considerable number of homeowners are retiring. Their kids are gone and they don’t need so much space anymore. Some of them have already signed up for a place in a retirement village or a condo in Palm Springs. They are pressured by time. They could pay for both residences for a month or two, but if it takes them six months to get the price they want, they will have spent the extra purchase price on rent or mortgage payments or homeowner fees in their new home.

The more knowledge you have of the hidden interests and constraints under which your bargaining partner is operating, the more negotiation power you have, even in a “seller’s” market.

But there’s even better news than that! If you act as if you are prepared to walk away from a deal unless you achieve your desired goal, your bargaining partner will be far more incentivized to meet your requirements or make serious problem solving efforts to create enough value so that both of you get what you most want.

5. Any Reason is Far Better Than No Reason and Nearly as Good as an Excellent One

When people estimate their value to their company by the results that their work has produced, they often hesitate sharing that information. “I can’t prove that,” they say, and being unable to “prove” it, they feel unable or unwilling to take credit for it.

Here’s the super secret of all great negotiators: You don’t have to prove something that justifies what you want; all you have to do is say it. When you’re negotiating, you’re not in a court of law. You’re rarely making statements of fact that could land you in hot water for fraud if they prove to be untrue. You’re stating an opinion, and no less an authority than the Supreme Court of the United States has said there is no such thing as a false opinion.

In common parlance, you’re puffing.

The social science research confirms that appearances are reality.

In one experiment, students were asked to cut in line at a local Kinkos. One group was told to give no reason, one a nonsensical reason, and one a good reason.

1. Can I cut in line?
2. Can I cut in line? My mother’s in the hospital, and I need to get these papers copied before I can go see her.
3. Can I cut in line? I need to.

Here are the compliance rates:

1. No reason: 40%
2. A good reason: 98%
3. A nonsensical reason: 97%

So, go ahead. Take credit for last quarter’s increase in net profits even if you can’t prove it. You don’t have to file a declaration under penalty of perjury or testify under oath on the witness stand. You’re highly unlikely to be cross-examined because your negotiation partner can’t prove that your causal assertion is untrue. Millions of years of “common sense” support your assertion that correlation is causation.

It’s not. But it might as well be.

Feel free to try out these strategies and tactics at home with the people closest to you. Can’t agree on a movie? Be willing to walk away if your choice isn’t met. Give a reason, any reason, why your choice would be better for everyone, not just for yourself. Understand that the push-back you’re getting is just an opportunity to problem-solve in a way that satisfies your interests and your roommate’s or spouse’s interests at the same time. Do this at home, and then try it out with that raise you haven’t gotten for the past five years. Then, let me know how it went!

Happy negotiating!

Victoria Pynchon is an attorney who practiced commercial litigation for 25 years. Since 2004, she has been mediating and arbitrating commercial disputes — the former with ADR Services, Inc. in Century City and the latter with the American Arbitration Association in Los Angeles. In 2010, she founded She Negotiates Consulting and Training with her business partner Lisa Gates. In 2006, Victoria earned her legal masters degree (LL.M) in Dispute Resolution. She has been teaching negotiation and providing negotiation consulting services to lawyers, executives, professionals, managers and entrepreneurs ever since. She is the author of two books, The Grownups' ABCs of Conflict Resolution (Reason Press 2010) and Success as a Mediator for Dummies (Wiley, April, 2012).

This post originally appeared at The Daily Muse. Copyright 2013.

How To Jump Through Condo-Lending Hoops

 

Whether buying or refinancing, getting a loan on a condo is hard. Here's what you should know.

By Michele Lerner of Bankrate.com

Borrowers run into two problems when getting a mortgage on a condominium: strict standards that make it hard to qualify for a condo loan and high costs.

These issues beset condo buyers who want to get mortgages as well as people who already own condos and want to refinance.

"Condos are like the canary in the coal mine, a leading indicator of the health of the real-estate market," says John McClellan, a branch manager with Supreme Lending in Austin, Texas. "Recently, lenders' biggest losses came from condos, so they are viewed as risky."

Some lenders reject condo loans altogether.

Condo loans have to jump through two hoops. First the borrower has to qualify. Then the condo association has to qualify, over which the borrower has little or no control.

"Condo financing is very situational because it depends not only on the borrower but also on the project itself," says Matt Ostrander, CEO of Parkside Lending LLC in San Francisco. "The guidelines have tightened because lenders want to see a financially healthy condo development. They want to see a higher concentration of owner-occupants, and they want to see that delinquency rates on condo fees are low."

Standards differ
Lenders follow guidelines from the Federal Housing Administration, Fannie Mae and Freddie Mac for condo mortgages.

Among Fannie Mae's requirements:

• More than half of the condo units must be owner-occupied.
• No owner may own more than 10% of the units.
• No more than 15% of owners can be delinquent on condo dues.
• All amenities must be completed if the development is more than 12 months old.
• Buyers who make a down payment of less than 25% will pay an additional 0.75% of the loan amount at closing or an interest rate that is about 0.25% higher.

The FHA has much friendlier down-payment requirements but has strict guidelines for condo associations.

"It's a misconception on the part of the public that you can't buy a condo without a big down payment," says Ed Wilburn, a mortgage banker with FEMBi Mortgage in Miami. "The rules are stricter now, but if you find a building that has already earned an FHA approval, you can get in with a down payment of 3.5%.

"FHA approval depends on the financial health of the condo, so the condo association needs to prove that they have adequate insurance, a budget with reserves, no pending lawsuits and no anticipated special assessments."

Where to begin
Wilburn says condo buyers should start by checking to see if a building is approved for FHA loans. If not, they can ask the lender to see if the building meets Fannie Mae and Freddie Mac guidelines. Buyers can ask condominium managers if they have recently completed a homeowner-association certification or questionnaire, which provides information on condo-fee delinquencies, insurance and other factors that affect eligibility for loans.

"Even if the condo meets the Fannie Mae guidelines, buyers may find that they must make a down payment of 20% or more because mortgage-insurance companies are less willing to provide mortgage insurance on condo loans, (because) they are considered riskier," Wilburn says. "In fact, most mortgage-insurance companies won't insure a Florida condo. It may be easier in other markets."

McClellan says a local lender will know which local complexes have FHA or Fannie Mae approvals.

"Have a list of places you like and check the status of their approval" with the lender, he says.

Options thin out
Condos that are not approved for FHA or Fannie Mae financing are known as "non-warrantable" and offer few options for buyers or refinancers.

"Buyers can either pay cash, or they can look for a local bank that is willing to lend," McClellan says, "but they should be prepared with a hefty down payment of 50% or more, have excellent credit and still be prepared to pay a higher interest rate. They should expect to pay as much as 7.5% when rates are 4.5% for other loans."

Homeowners interested in refinancing will first need to face the potential problem of a lack of equity, because condo values have dropped in many areas.

"Condo owners can ask their management company if their complex is FHA- or Fannie Mae-approved, and if (the complex is) not, they may want to contact a local lender to see if they start the process for obtaining an approval," McClellan says. "It's in the best interest of all the owners to do what they can to meet FHA guidelines, (because) that approval can increase the value of all the homes in the development."

If The Debt Ceiling Does Not Pass: Mortgage Rates May Surge if Gov't Defaults

DAILY REAL ESTATE NEWS | WEDNESDAY, OCTOBER 16, 2013

The clock is ticking for lawmakers to prevent the debt ceiling breach or the government could default on its debts. If the government does default, there likely be one consequence for home buyers that will soon emerge: skyrocketing borrowing costs. 

"Anytime there is a default, the borrower is going to get punished in terms of higher interest rates; if the government defaults, that means Treasury rates will also rise, and that also pushes up mortgage rates,” Lawrence Yun, chief economist for the National Association of REALTORS®, told Fox Business Network. “The housing market is highly sensitive to changes in interest rates.”

Home buyers may not be aware that there is a strong link between the government default and mortgage rates. 

The average rate on a 30-year fixed-rate mortgages was 4.23 percent last week, Freddie Mac reported. 

However, if the government defaults, mortgage rates could rise overnight by a full percentage point or more, says Anthony Hsieh, founder and CEO of LoanDepot, an online mortgage lender. Stu Feldstein, president of SMR Research, a mortgage research firm, predicts mortgage rates could rise by as much as two percentage points within a day or so. 

Hsieh believes the rise in rates would prompt more buyers to consider adjustable rate mortgages. 

"In the last three years or so, consumers have been spoiled with rates in the high threes to the mid-to-low fours,” Hsieh says. “If we climb into the 5 percent interest rate range, that will create psychological barriers and adjustable rate mortgages will become attractive -- even if they aren't."

Higher mortgage rates could make a big difference to buyers’ with their monthly payments. For example, a 30-year fixed-rate mortgage for a $300,000 loan could have about a $1,472 a month payment at a 4.23 percent mortgage rate. But if mortgage rates rise to 5.5 percent, that same mortgage would have about a $1,703 monthly payment and $83,160 extra in interest over the life of the loan. 

Source: “Could Government Default Send Homebuyers Racing to ARMs?” FOX Business (Oct. 15, 2013) and “Mortgage Rates Could Spike if U.S. Defaults,” The Wall Street Journal (Oct. 16, 2013)

Is It Now Or Later?

Why it Might Be Cheaper to Buy Now

DAILY REAL ESTATE NEWS | THURSDAY, OCTOBER 10, 2013

Mortgage rates are nearing the 5 percent mark, prompting many home buyers to rush to take advantage of rates while they’re still low. 

“Most people agree it is only a matter of time before rates hit 5 percent,” Peter Grabel, a mortgage loan originator at Luxury Mortgage Corp. in Stamford, Conn., told realtor.com®. “The housing market has clearly turned the corner in most areas. I think a year from now, people will look back and realize that this was a great buying opportunity.”

Some forecasts show rates could edge even higher to 5.5 percent or even 6 percent in 2014. The Federal Reserve has announced that it will soon start tapering its $85 billion monthly bond-purchasing program, which is expected to send mortgage rates rising from recent record lows. 

Currently, 30-year fixed-rate mortgages are averaging 4.2 percent, according to Freddie Mac. 

In a recent blog post, realtor.com® illustrates the effect of rising mortgage rates on buyers’ pocketbooks: 

1. Example: A buyer gets a 30-year fixed-rate mortgage at a 5 percent interest rate on a $300,000 loan.
   Monthly payment: $1,610.46
   Total payment: $579,569.69
   Total interest: $279,769.69
2. Example: A buyer gets a 30-year fixed-rate mortgage at 6 percent interest rate on a $300,000 loan.
   Monthly payment = $1,798.65
   Total payment = $647,515.44
   Total interest = $347,515.44

The buyer with a 6 percent interest rate would pay about $67,746 more over the life of a loan than the buyer who was able to get an interest rate at 5 percent. 

Source: “Buy a Home Now or Pay More Later?” realtor.com® (Oct. 8, 2013)

Employment gap between rich, poor widest on record...

http://modernhomebuyers.com/

By Hope Yen, Associated Press

WASHINGTON (AP) - The gap in employment rates between America's highest- and lowest-income families has stretched to its widest levels since officials began tracking the data a decade ago, according to an analysis of government data conducted for The Associated Press.

Rates of unemployment for the lowest-income families – those earning less than $20,000 – have topped 21 percent, nearly matching the rate for all workers during the 1930s Great Depression.

U.S. households with income of more than $150,000 a year have an unemployment rate of 3.2 percent, a level traditionally defined as full employment. At the same time, middle-income workers are increasingly pushed into lower-wage jobs. Many of them in turn are displacing lower-skilled, low-income workers, who become unemployed or are forced to work fewer hours, the analysis shows.

"This was no `equal opportunity' recession or an `equal opportunity' recovery," said Andrew Sum, director of the Center for Labor Market Studies at Northeastern University. "One part of America is in depression, while another part is in full employment."

The findings follow the government's tepid jobs report this month that showed a steep decline in the share of Americans working or looking for work. On Monday, President Barack Obama stressed the need to address widening inequality after decades of a "winner-take-all economy, where a few do better and better and better, while everybody else just treads water or loses ground."

"We have to make the investments necessary to attract good jobs that pay good wages and offer high standards of living," he said.

While the link between income and joblessness may seem apparent, the data are the first to establish how this factor has contributed to the erosion of the middle class, a traditional strength of the U.S. economy.

Based on employment-to-population ratios, which are seen as a reliable gauge of the labor market, the employment disparity between rich and poor households remains at the highest levels in more than a decade, the period for which comparable data are available.

In the first seven months of 2013, the employment rate was 73.5 percent for households with income of more than $150,000 a year, compared with 33.8 percent for households making less than $20,000 – a gap of 39.7 percentage points, similar to the ratio in the most recent years after the recession. In contrast, the employment gap was 36.4 percentage points in 2005, at the height of the housing bubble.

"It's pretty frustrating," says Annette Guerra, 33, of San Antonio, who has been looking for a full-time job since she finished nursing school more than a year ago. During her search, she found that employers had become increasingly picky about an applicant's qualifications in the tight job market, often turning her away because she lacked previous nursing experience or because she wasn't certified in more areas.

Guerra says she now gets by doing "odds and ends" jobs such as a pastry chef, bringing in $500 to $1,000 a month, but she says daily living can be challenging as she cares for her mother, who has end-stage kidney disease.

"For those trying to get ahead, there should be some help from government or companies to boost the economy and provide people with the necessary job training," says Guerra, who hasn't ruled out returning to college to get a business degree once her financial situation is more stable. "I'm optimistic that things will start to look up, but it's hard."

Last year the average length of unemployment for U.S. workers reached 39.5 weeks, the highest level since World War II. The duration of unemployment has since edged lower to 36.5 weeks based on data from January to July, still relatively high historically.

Economists call this a "bumping down" or "crowding out" in the labor market, a domino effect that pushes out lower-income workers, pushes median income downward and contributes to income inequality. Because many mid-skill jobs are being lost to globalization and automation, recent U.S. growth in low-wage jobs has not come fast enough to absorb displaced workers at the bottom.

Low-wage workers are now older and better educated than ever, with especially large jumps in those with at least some college-level training.

"The people at the bottom are going to be continually squeezed, and I don't see this ending anytime soon," said Harvard economist Richard Freeman. "If the economy were growing enough or unions were stronger, it would be possible for the less educated to do better and for the lower income to improve. But in our current world, where we are still adjusting to globalization, that is not very likely to happen."

The figures are based on an analysis of the Census Bureau's Current Population Survey by Sum and Northeastern University economist Ishwar Khatiwada. They are supplemented with material from the Massachusetts Institute of Technology's David Autor, an economics professor known for his research on the disappearance of mid-skill positions, as well as John Schmitt, a senior economist at the Center for Economic and Policy Research, a Washington think tank. Mark Rank, a professor at Washington University in St. Louis, analyzed data on poverty.

The overall rise in both the unemployment rate and low-wage jobs due to the recent recession accounts for the record number of people who were stuck in poverty in 2011: 46.2 million, or 15 percent of the population. When the Census Bureau releases new 2012 poverty figures on Tuesday, most experts believe the numbers will show only slight improvement, if any, due to the slow pace of the recovery.

Overall, more than 16 percent of adults ages 16 and older are now "underutilized" in the labor market – that is, they are unemployed, "underemployed" in part-time jobs when full-time work is desired or among the "hidden unemployed" who are not actively job hunting but express a desire for immediate work.

Among households making less than $20,000 a year, the share of underutilized workers jumps to about 40 percent. For those in the $20,000-to-$39,999 category, it's just over 21 percent and about 15 percent for those earning $40,000 to $59,999. At the top of the scale, underutilization affects just 7.2 percent of those in households earning more than $150,000.

By race and ethnicity, black workers in households earning less than $20,000 were the most likely to be underutilized, at 48.4 percent. Low-income Hispanics and whites were almost equally as likely to be underutilized, at 38 percent and 36.8 percent, respectively, compared to 31.8 percent for low-income Asian-Americans.

Loss of jobs in the recent recession has hit younger, less-educated workers especially hard. Fewer teenagers are taking on low-wage jobs as older adults pushed out of disappearing mid-skill jobs, such as bank teller or administrative assistant, move down the ladder.

Recent analysis by the Associated Press-NORC Center for Public Affairs Research shows that whites and older workers are more pessimistic about their opportunities to advance compared to other groups in the lower-wage workforce.

Eric Reichert, 45, of West Milford, N.J. Reichert, who holds a master's degree in library science, is among the longer-term job seekers. He had hoped to find work as a legal librarian or in a similar research position after he was laid off from a title insurance company in 2008. Reichert now works in a lower-wage administrative records position, also helping to care for his 8-year-old son while his wife works full-time at a pharmaceutical company.

"I'm still looking, and I wish I could say that I will find a better job, but I can no longer say that with confidence," he said. "At this point, I'm reconsidering what I'm going do, but it's not like I'm 24 years old anymore."

Should I Rent or Buy A Home? | Calculators by CalcXML

Should I Rent or Buy A Home? | Calculators by CalcXML