Buyer's Market

CNNMoney confirms what we already know. It's a buyer's market in housing right now.

• It's official - even the nation's leading group of real estate agents now says it's a buyers' market in housing, as a soaring supply of homes for sale means nearly flat prices and longer waits for sellers.

My friend has been trying to sell his house for the past 2.5 months because he accepted a job offer in another state. At the 60 day mark, he lowered his asking price by $40,000. And he's thinking of lowering it even more. His realtor told him that since early June, 150 houses came on the market within the same price range within his town. And only a handful have actually sold. So, he's facing some stiff competition.

And as I mentioned in a previous post, I'm thinking of putting my condo on the market next spring. It's probably an understatement to say that I'm just a tad bit worried.

Pros and Cons of Debit Cards

In this week's edition of Newsweek, Jane Bryant Quinn outlines some of the pros and cons related to debit card usage in A Debit-Card Nation.

The Pros
- You know you're spending real dollars. The purchase is pulled immediately from your bank account.
- They're an easy source of walking-around money. As with Discover Card, you can usually use debit cards to get cash at most grocery or drug stores by asking the cashier to add a specified amount to your total.
- They're a way to save. Not sure I agree with this one, especially for those folks who don't carry a balance. But if you have a lot of credit card debt, it's true that you can avoid racking up additional interest on credit card purchases by using your debit card.

The Cons
- You can't use debit cards to establish credit history.
- Very few debit cards offer decent reward programs. And for the few that do, only signature debits count towards reward points. In other words, you need to swipe your debit card, choose debit/credit, and then sign the receipt (vs. PIN transactions, where you just swipe your card and enter a PIN number).
- You risk losing the contents of your entire bank account. Although Visa and MasterCard advertise "zero liability" if you're a victim of identity theft, some banks only offer this protection for signature debits. And only if you notice and report the theft within a specified period of time. With credit cards, you're usually only liable for $50, no matter when you report the issue.

And one final piece of advice. Don't use debit cards for online purchases. "With your bank account open, you risk too much. Order by credit card or order only by phone."

Happy to be a Guinea Pig

Thanks to all the pf bloggers out there (including Jim at Blueprint for Prosperity), who clued me in on survey networks. I've been faithfully filling out on average, five surveys a week for the past few months, in the hopes of winning some easy money through the raffles and sweepstakes that most of these companies sponsor. Each survey takes about 10 minutes to complete (I usually skip the longer ones). And this past week, I received my first $5 check from PineCone Research.

Aside from the extra income, one of the unexpected and neat side benefits to all this is being able to sample and help shape new products before they hit the general market. A few weeks ago, after I filled out a survey about food products, I was asked whether I'd be willing to test a product and provide feedback. I figured, 'Sure. Why not?' So, they sent me a big bag of yummy BBQ flavored potato chips. And last night, they sent me two full sized bottles of shampoo and conditioner that I'll need to use every day for the next two weeks. Of course, there are certain products that I probably wouldn't want to try, especially if I had health concerns about the product. But it's been kind of fun being a guinea pig for all of the marketing gurus out there.

When It's Better Not to DIY

Yesterday afternoon, I played hooky from work and went for a bike ride along the lakefront. Halfway through my usual route, I veered off of the bike path and onto the concrete breakers. Along that particular stretch of the lakefront, people apparently have some pretty wild parties. You can see the evidence in the debris because they apparently don't know how to clean up after themselves. I usually manage to ride around the piles of garbage without too much trouble. But after a particularly violent thunderstorm the other night, there were shards of glass everywhere. Just as I was about to turn around and head back toward the paved bike path, I heard a hissing sound behind me. And I realized that I'd managed to puncture the inner tube in my rear tire. I got off my bike and managed to pull a sizeable chunk of glass out of the tire. Not such a good idea because that pretty much flattened the tire completely.

At that point, I had a couple of options. First option was to ride back home with the flat tire and basically ruin the rim. I wasn't sure exactly how much a new rim would cost, but I was pretty sure that it was more than I wanted to pay. Second option was to try and flag down an experienced rider with a patch kit and a mini bike pump and offer to pay him $20 to fix my flat. I only had a $20 bill and a credit card on me. But if I asked someone to patch the leak, it would probably take a while, and I would still need to replace the inner tube at some point in the near future. And what if the guy didn't really know what he was doing and wound up making things worse? My ex-boyfriend had a tough time getting my rear tire back on when he replaced my tires last year. And he works with bikes all the time. The third option was to walk my bike all the way back to the neighborhood bike shop, approximately 3 miles away. Although it would take about an hour, I figured once I got to the bike shop, they could fix my flat fairly quickly. And it probably wouldn't cost that much. So, I went with the last option.

And boy, it was a loooooong walk in the hot afternoon sun. But since I'd call the bike shop owner beforehand, he was expecting me. He had me in and out of there in 10 minutes flat (no pun intended). And he only charged me $9.95 (for both parts and labor) to replace the inner tube. Now that's what I call a good deal!

All this to say, sometimes it's best just to leave it to the experts. I know that my ex-boyfriend would've been disappointed that I didn't bring with me the patch kit and mini pump that he'd given me. But I can honestly say that if I had attempted to fix the flat on my own, it would have taken me twice as long and been just as expensive as walking all the way home and having the bike shop do it for me.

Sizing Up the Competition

I mentioned in an earlier post that I'm planning on going back to grad school next fall. So, I'll probably need to sell my condo. A realtor friend mentioned that there's a huge inventory of condos in my neighborhood right now because they're throwing up new buildings left and right. And I'm worried that higher interest rates are scaring away potential buyers. All this to say, I think it'll take me a heck of a lot longer to sell this condo than it took to sell my last one.

Well, the other day, I bumped into my upstairs neighbor. Her husband and I had purchased our condos at around the same time, nearly 2 years ago. So, I mentioned that I was thinking about selling my condo next spring. Her encouraging response? "Yeah, we're probably going to do the same thing." I'm thinking, 'Uh, oh.' Our units are nearly identical in terms of floor plan and layout, except that my unit has a couple of extra upgrades, a larger outdoor deck and hardwood floors throughout. I also paid more for my unit than they did for theirs. So no matter how you slice it, my condo is going to be priced higher. And I can totally see some buyer wanting to use their selling price as a starting point for negotiations on mine 'cause that's precisely what I did when I bought my place. Sigh. This'll be interesting.

On a more positive note, one of my good friends has been looking to buy a new townhouse, in the general vicinity of the school where I'm hoping to do my graduate studies. And she offered to let me stay with her (assuming that I pay rent, of course). So, that's a load off of my mind. I was so not looking forward to the prospect of student housing or renting a house with a bunch or random strangers.

Just a Small Cone, Please

So, I ran over to Dairy Queen this afternoon for a dipped cone. I figured I'd reward myself for achieving my 10 week fitness goal in less than 7 weeks. Of course, a bunch of people had the same idea, because there was a huge group ahead of me. But with 2 servers, the line was moving fairly quickly.

Then I noticed that the guy in front of me was sort of hanging back, and he refused to move any closer to the counter. So, I asked him if he was in line? "Yes, but I'm waiting for the next server. I've learned the hard way that the short lady is pretty stingy with the ice cream. Not sure what her problem is." Umm...okay (mental shrug).

Well, a new server pops in and asks to take care of the next customer. So the guy in front of me lunges towards him and quickly places his order. Meanwhile, the short lady finishes waiting on another customer, and I'm up next. I figure, who cares? I get a smaller cone, I get a smaller cone. Enforced portion control. So, I went ahead and placed my order for a small dipped cone. Well, low and behold, I finish paying the other server, and the woman hands me this absolutely hugeantic cone. Yikes! I'm guessing she must've overheard the other guy complain about her service. Or maybe she just doesn't like the other guy 'cause he was rude to her at some point or another. She was clearly trippin' off of something.

Oh well. So, much for portion control. My only consolation is that I'll be helping to load up a friend's truck tonight in preparation for a cross country move. Hopefully I'll be able to burn off the extra calories.

Wishing I Were Average

In terms of shoe size. In one of my earliest posts, I mentioned that I have trouble finding clothes that fit because I'm what the clothing manufacturers refer to as 'petite' (i.e., another nice way of saying that I'm vertically challenged). Well, I also have what my friends refer to as tiny feet, as well as short toes and low arches. Which means that I have trouble finding shoes that fit. On Wednesday, I ordered a brand new pair of Chaco ZX/1 sport sandals from shoes.com in a size 6, the smallest size that they had in stock. I was all excited because they're supposed to be really comfortable. And I got a great deal on them using a discount from the upromise website. Unfortunately, when I tried them on yesterday evening, they were too big. Huh! According to the Chaco website, the sandals do come in a size 5. So, I checked for a smaller size at Amazon, REI, shoemall and shoebuy. No such luck. Oh, to be an average sized American female...sigh.

Remanufactured Inkjet Cartridges - Money Saver or Waste of Time?

Back in early March of this year, I decided to try and save some money (approx. $10) by ordering a remanufactured inkjet cartridge from 4inkjets, one of a handful of online companies that refill and recycle old inkjet cartridges. Well, I've since read in a couple of news articles that inkjet cartridges can only be refilled about 10 times before the print quality starts to erode. And yesterday, I learned the hard way that you really do get what you pay for because I ran out of ink. Mind you, in the past, I've rarely had to replace the cartridge because I hardly ever use my printer. I mostly download stuff onto my hard drive or my Palm.

So, rather than running out and buying a new cartridge, I decided to call 4inkjets this morning to lodge a complaint. The customer service rep put me on hold for a few minutes. But when he got back on the line (without any additional prodding on my part), he told me that he would send me a new cartridge. Which leads me to believe that it's a fairly routine customer service issue that they encounter every day. And not to look a gift horse in the mouth, but part of me really just wanted a refund. I'm going to be really annoyed if I run out of ink again 3 months from now, especially if I'm in the middle of printing out something that I need ASAP.

Anyway, live and learn. If this cartridge turns out to be a dud, I'm going to stick with purchasing new cartridges.

Corporate Responsibility

Two recent headlines from the Chicago Tribune that I'd like to highlight. In my mind, illustrate both the good and the bad in corporate America when it comes to business ethics and moral responsibility.

Lay's Death Robs Many of Closure

• The death of Enron Corp. founder Kenneth Lay on Wednesday puts an abrupt stop to a criminal prosecution that appeared to be leading inexorably to a life sentence for the one-time corporate kingpin. His death also eliminates an opportunity to deter wrongdoing by imposing a severe penalty, and robs American society of closure in one of its most painful commercial affairs, some observers said.

Suspects in Coke Case to Appear in Court

• Coca-Cola and Pepsi are usually bitter enemies, but when PepsiCo Inc. got a letter offering Coke trade secrets, it went straight to its corporate rival. Six weeks later, three people were scheduled to appear in federal court Thursday to face charges of stealing confidential information, including a sample of a new drink, from The Coca-Cola Co., and trying to sell it to PepsiCo. "Competition can sometimes be fierce, but also must be fair and legal," Pepsi spokesman Dave DeCecco said. "We're pleased the authorities and the FBI have identified the people responsible for this."

Fair and legal competition? What a concept ;-) I have several friends who work for PepsiCo, so it's good to hear that their employer walks the talk when they encourage moral and ethical behavior. My employer just came out with a new version of its business principles, including my absolute favorite, "operate with the highest standards of integrity". If even half of my fellow employees started adhering to that particular principle, I'd be a really happy camper.

Initiating a Refund

I mentioned in a previous post that I've been selling some of my old books and CDs to clear off some shelf space. So far, I've had tremendous luck with Amazon.com and the USPS. But this morning I had to initiate my first refund because a shipment got lost in the mail. The buyer was really decent about it. He submitted his order on June 15th, I sent the book out via USPS media mail on the 16th, and he waited until a week and a half had passed before sending me a polite inquiry about the order. I asked him to wait a few more days, which he did. But as of last night, the book still hadn't arrived. So, I emailed him back to tell him that I'd refund his money and to apologize for the inconvenience. If the book does eventually arrive, I'll just eat the cost.

Call me cynical, but I do wonder if this guy is trying to pull the wool over my eyes? Since I didn't pay for delivery confirmation, who's to say that this guy didn't already get the book when he sent me that first email?

Sigh. The sad thing is that the book was fairly heavy and quite large, so it took more effort on my part to package the darn thing, and to add insult to injury, the shipping costs were more than double what I would've paid for a normal trade size book. Oh well. Live and learn. The cost of doing business, I suppose.

Five Buck Club - Cheap Movie Tickets

If you're lucky enough to live in a state where there's a Kerasotes movie theatre (currently Illinois, Indiana, Minnesota and Ohio), you can enroll in the Five Buck Club.

• After a particular film has played a certain number of weeks — at least two — but occasionally more, we are able to offer you a discounted price, so admission to those films will be available to club members for only $5.

I just signed up for Netflix last month, and I have access to HBO (a not so great use of my condo association fees). But there are still certain types of movies that I prefer to watch in the theatre. The Five Buck Club is an excellent deal for folks like me who don't necessarily need to see a movie opening weekend. Enjoy!

Extreme Generosity

Newsweek's cover story, 15 People Who Make America Great, profiles individuals who "through bravery or generosity, genius or passion, devote themselves to helping others." Of course the most prominent photo on the cover of the hard copy is Brad Pitt, as if he's being singled out as the best of the best. Newsweek must really be hurting for sales. But I digress. I found many of the profiles inspiring, especially the story about Rick Warren, author of the "The Purpose Driven Life" and founder of Saddleback Church.

• Since its publication, "The Purpose Driven Life" has sold 30 million copies in English, making it by some accounts the best-selling hardcover ever. It is a phenomenon, a movement. It has given Warren access to world leaders at Davos, to corporate chiefs and rock stars. It has generated "tens of millions of dollars," Warren says—enough for him to pay his own salary back to his church, retroactively, for the past 25 years, enough to launch three foundations. "PDL" allows Warren to "reverse tithe": he gives away 90 percent of what he earns.
  
• Another pastor might be content to diversify into "PDL" DVDs and gift books, but Warren is more ambitious. If "2.3 billion people in the world claim to be followers of Jesus," then why not take the next step and mobilize those people to do important things, like stop poverty, improve literacy, feed the hungry, heal the sick? Conventional relief organizations are fine, but why not tap what Warren calls "the faith sector," the armies of motivated religious volunteers who are sick and tired of polarizing rhetoric and professional crusaders? "The old paradigm was, 'You pay, you pray, you get out of the way'," he explains, but in today's global and wired world, troops of caring volunteers can be deployed to communities in need with the push of a button.

So Rick Warren gives away 90 percent of what he earns? Wow. And I thought Angelina Jolie was generous. This is one individual who puts his money where his mouth is.

Stars' Worst Jobs

Last month, Nickel over at Five Cent Nickel started a series in the pf blogging community called 'Worst. Job. Ever'. Well, someone over at Entertainment Tonight stole his idea! Read more about in Stars' Worst Jobs.

Anyhow, many of the actors who were asked about their worst jobs recalled working in the cleaning services industry, which doesn't really surprise me. The worst part about my worst job ever was having to clean the popcorn machine.

Unclaimed Baggage

Ever wonder what happens to unclaimed luggage? According to an article in the Chicago Tribune, some of it winds up at the Unclaimed Baggage Center which is "a retail outlet that buys lost baggage that has gone unclaimed for at least 90 days directly from airlines" and then sells the contents to the general public at substantially discounted prices. The store is inconveniently located in Scottsboro, Alabama. But selected items are also available for purchase online at www.unclaimedbaggage.com.

So, what are the odds of finding some of your own lost items?

Cantrell said that's a "nearly impossible task." That is, unless you're one lucky woman in Atlanta."There was one gentleman who ended up buying his wife's old ski boots that she had lost two years ago," Cantrell said. " She had gotten a reimbursement from the airlines and everything, but he bought them here for $45 and didn't even know they were her original boots until he brought them back home to her in Atlanta.

Wire Transfers

I successfully completed my first wire transfer yesterday. Welcome to the 21st century, right? The funny thing is that I'm usually okay with sending checks in the mail. But lately, I've had a couple of strange incidents with misdelivered mail. Factor in the risk of theft from idiots who have nothing better to do than steal blank checks from people, and you have recipe for disaster. So, rather than overnight the check to my brother (to help with the down payment on a house), I spent $20 to wire transfer the money instead. I figured, as an added bonus, he wouldn't need to run to the bank to deposit the check and then wait 5 business days for it to clear.

Of course, the transaction was a lot slower than I was led to believe. I initiated the transfer via a live teller on Monday afternoon at 2:55PM, but because the teller was too busy eavesdropping on her neighbors conversation, we wound up missing the end of day cut off by 4 minutes. Anyway, when I asked when the transaction would be completed, she told me by mid-morning the next day. Hmm. Well, by Tuesday evening, I was beginning to get worried. Did I give her the correct routing number and bank account number? But I checked everything before I signed the paperwork? So I told myself to give it another day. It finally showed up as a completed transaction Wednesday morning. Whew! Moving around significant amounts of money can be quite nerve wracking. Here's hoping that I never have to do this again.

IBM/Lenovo - Another Positive Customer Service Story

This has been kind of a crappy week for me. I woke up Monday morning with a huge headache. And when I reached for my much needed first cup of coffee, my hand wobbled, and I wound up 'pouring' it all over my new Lenovo ThinkPad. Although I reacted quickly and managed to drain most of liquid out of the darn thing, it fried the keyboard. The irony is that I bought a ThinkPad precisely because I love the feel of the keyboard. Anyway, I didn't have time to deal with it right then, so I waited until evening to call tech support. I know this sounds really cynical on my part, but I was expecting to get the run around from some call center rep in India. Instead, I was connected to an IBM Tech Support Center somewhere here in the U.S. I spoke to two separate individuals, and one had a Midwestern accent, while the other had a southern drawl. They opened a trouble ticket for me and then offered to ship me a new keyboard in 2 days, no questions asked! Now that's what I call good customer service. The only catch was that I had to install it myself. In the words of the tech support guy 'If I can do it, you certainly can.' Umm, yeah, okay, right.

Thankfully, he pointed me towards some excellent videos on the IBM support website that had installation and removal instructions. Honestly, he was right. It wasn't all that difficult, once I got the case open. Except that the sugar in the spilled coffee had carmelized and managed to glue one of the hinges shut. Yuck.

The funny thing is that once I had the laptop apart, I realized that I had spilled the coffee in the exact spot where it could have done the least damage because the drive bay was covered by a thin piece of sheet metal. Any further towards the middle or the left of the keyboard, and I would have fried the CPU, which surprisingly is not encased in a separate box. I guess my guardian angel was working over time that morning. I would have been really upset if I needed to replace the darn thing when I just bought it 2 months ago.

Anyway, no more eating or drinking near the laptop.

On a related note, the acid from the coffee managed to etch several visible lines into the metal case above the drive bay. It's making me think that I should cut down on the amount of caffeine that I drink. If a tiny bit of coffee can do that to sheet metal, I shudder to think what 3 cups a day is doing to my stomach lining.

Why Flat Stocks May Not Always Mean Flat Gains

When the market takes a nose dive (like it has in the past few weeks), it's a great time for bargain hunters to add to their holdings. Most of my retirement assets are invested in aggressive growth mutual funds. But when it comes to individual stocks, I take more of a long term, buy and hold approach. In short, I'm drawn towards the relative safety of large, well-known corporations that pay hefty dividends.

This afternoon, the Motley Fool published The Market's 10 Most Mediocre Stocks, an article that essentially validates my approach to stock investing. The authors explain why flat stocks (i.e., stocks that haven't increased much in terms of price), aren't really flat.

First, there are the hefty dividends that most large corporations pay to their shareholders. Second, if a shareholder reinvests the dividends, there's the larger ownership stake in the company, which translates into the potential for a greater reward when the stock price does tick upwards. "The greatest rewards will go to those who had regularly reinvested their dividends at the lowest prices. This is why Wharton professor Jeremy Siegel calls dividends a bear market protector and a return accelerator. Simply put, they can protect you from an unforeseen calamity." And in today's market, that's saying a lot.

So, just to give you an idea of the types of stocks that I'm talking about, I went ahead and bought some shares of Procter & Gamble today. It's a solid, diversified company that sells great products, including ones that I use on a daily basis. Do I think that the stock price will double in the next year or so? Of course not! But I'm counting on those nice juicy dividends to help offset some of my paper losses. And I'll be adding to my ownership stake by reinvesting those dividends.

Father's Day Gift

In the past, I've been fairly uncreative in my choice of Father's Day gifts. What do you get for a guy who doesn't have a lot of hobbies and has very simple tastes? So, I usually wind up buying an item of clothing or a book, plus a card and dinner at the restaurant of his choice.

But this year, I started early. And after much angsting, I decided to buy him a Homedics Therapist Select Quad Roller Massaging Cushion from Bed Bath & Beyond. I gave it to him a week early because I wanted to make sure that he liked it. And thankfully, he did. Apparently, he's been wanting one for a while now, but my mom kept balking at the cost. Unlike some of the cheaper models, this one has four rollers that provide a really deep massage. Personally, I think the motors are almost too strong 'cause they really dig deep into your back.

Anyway, I've been in sort of a pensive mood lately about my parents. Two of my co-workers lost their moms to cancer this past month. So, it's been a somewhat harsh reminder that my parents are getting up there in years. Life as I know it could change in an instant.

My dad just turned 65 last month, and he's been noticeably tired lately. He started a new job in February because his old employer sold all of their assets and the new company moved all of the operations to California. The commute to and from the new job is pretty brutal, but my dad feels the need to work for financial reasons. My mom keeps herself busy with church related activities and household chores. She has a lot of hobbies, such as gardening and sewing. But she's convinced that she's going to die 'young', so she keeps harassing me to get married. Like most traditional moms, her sole remaining duty and responsibility in this life is to marry me off. Anyway, all this to say that I'm trying to make every birthday and holiday with my parents count.

If you haven't told your parents lately that you love them, please take the time to do so this week. And if you're looking for a cool gift for Father's Day, try the massaging cushion.

Opposite Ends of the College Debt Spectrum

There's a depressing article in the Chicago Tribune entitled 'New college graduates get quick education about debt.'

• The average graduate who borrowed for college leaves school with almost $20,000 in student loans and about $2,000 in credit card debt. About two-thirds of students borrow for school, said Sandy Baum, a senior policy analyst for the College Board.
• People in their 30s are delaying home purchases and having children because their debts are too great.

On the opposite end of the spectrum, there's a really heartwarming story about Robert and Jill Car, a wealthy couple who are giving back to their community by sponsoring full tuition scholarships for 18 lucky eighth graders in Lockport, IL.

• Carr calculates it will cost $720,000 to keep the promise each year. He said he and his wife plan to commit $100 million of their own money to get the program going. The funding has been placed in a charitable trust."When I ask myself, what in the heck does a person do with $250 million, my best answer is to help disadvantaged kids break out of their depressing lives one by one," he said. "We won't change the world, but we will change the world for a few kids--as many as we can afford."

I was the recipient of a similar grant through my father's employer - full tuition and fees (but not housing or living expenses) at a specific state university. Unfortunately, the foundation that awarded the scholarship mismanaged the funds, so the 'guaranteed' scholarship wasn't renewed in my senior year. As a result, I made the difficult decision to graduate from college a semester early. Needless to say, it was a hectic four months, trying to cram in the rest of my required coursework. But looking back on that experience, I realize that I was lucky. I graduated with pretty much zero debt because what the scholarship and part time jobs didn't cover, my parents paid for.

Leftover Wine

What to do with leftover wine? Turn it into a tasty wine reduction sauce.

• Pour half-empty bottles of wine into a saucepan and bring to a boil. Lower heat and simmer until the wine reduces by three quarters. Most of the alcohol will be boiled out, and the flavor will be intensified. Cool, pour into ice cube trays and place in the freezer. When fully frozen, store in a Ziploc freezer bag for future use. Reduced wine adds lovely depth to sauces, gravies, soups and dessert syrups.

For additional party tips, check out this article from Clean Home Journal.