On this week’s Preforeclosure Daily Grind “Tip of the Week” we dive into what many of today’s buyers’ lenders are requiring on your short sale acceptance letters, in order to finance a short sale purchase transaction. Listen in to see what McCue Mortgage is requiring from Bank of America and CitiMortgage. We also cover what line to put a 2nd lien holders payment on a HUD-1 settlement statement to satisfy a 1st mortgage, why you can’t change a Bank of America short sale approval letter, why CitiMortgage no longer accepts extra payments of the HUD-1 settlement statement and more.

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End Buyer’s Lenders Are NOW Stopping Short Sale Transactions is a post from: Short Sale Daily News

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1. CitiMortgage Changes Short Sale Policy Again!
2. Short Sale Transactions: Know Your Repairs or Lose!
3. What To Do When a Short Sale Lender Goes Against Their Investor

RISMEDIA, July 28, 2010—One of the most difficult challenges in selling is to compete against a competitor who is willing to cut cost. Businesses are free to compete on price, service or quality, and consumers are free to make buying decisions on these criteria. But competing on price will only cost you profit. Why do some companies offer discounts? Well first of all, it’s a way to buy market share, kind of like a loss leader in retail. They treat the loss as a way to gain customers. The problem is that if they ever want to raise their fee and make a profit, it will be very difficult to do so. They may get more market share…but not more profit. Both you and your company are sometimes tempted to cut a fee to get one more listing or one more percentage market share; only you can answer, is it worth it?

According to David Knox Productions, there are three fundamental responses to price competition, you can:

-Match their price,
-Differentiate yourself through value-added selling or,
-“Let Go” of the business

Matching price is painful and there will always be competitors who are at a lower price. If you go down that path, you may be busier but have less profit. And you’ll never reach a point at which a competitor will undercut you. Resist the temptation to compete only on price. Remember, market share is for kids, profit is for adults.

Value added selling requires skill. If you were buying a Blu Ray player and found one for 9, another for 9 and a third for 9, you’d probably ask; “What’s the difference?” Your listing presentation must clearly contrast the difference in service and results over a lower fee competition.

To differentiate yourself, you must cite specific benefits that are worth more than the fee difference. Relate all of these to the sellers’ net because the net equity is more important than any specific cost.

Demonstrate to them that by paying more for better service, they will net more from the sale and will do it sooner. Present your sale-to-list ratio, percent expirations, days on market, average sale price, guarantees of service backed up with cancellation clause, target marketing proposal and/or unique service.

‘Letting Go’ of the Business.
As important as value is, it’s even more important to be at a position of strength and stand on principle. Dialog and value won’t help unless you simply decide to say “no” to commission cutting.

If a seller asked you to violate a Federal law as a condition of listing, would you do it? Of course not. Attach that same position of strength to your fee. Once you decide not to cut your fee, you will carry yourself differently. The owners will sense this strength. Instead of wimping out on fee, you will pause, smile and gently explain that you’ve made a choice to deliver higher value and results instead of a lower fee. From this day forward avoid reducing your fee.

The good news is you will never have a low commission listing again. The bad news is—you’ll lose some listings. Many agents feel they would rather have 80% of something than 100% of nothing; bad philosophy.

If you hold firm to your fee, you’ll probably lose 10-15% of the listings you attempt. If you cut your fee by only 1% on all your listings, you’ll lose 15-33% of your profit. (Divide your commission rate into 1 for the real percentage discount. Do the same math on the co-op sales and average it out). What you’ll discover is that a 1% reduction in your fee on 100 listings will require you to list about 20 more homes just to break even.

When a seller says to you, “Another company charges 1% less,” your mission is to sell a net gain that equals the difference.

Make sure commission is the only objection. Ask the seller: “Other than our fee, are you ready to list with me?”

Convert the commission objection to a net equity objection. “Why is our fee an issue?” (Because we need the money). “So the net equity is most important to you, right?” (Yes). Net equity is not only a function of expenses, but of income. Let’s take a look at the three factors of income to you: a) ability to have the home sold at all, b) final sale price as a percentage of list price, and c) time on market.

Now you must compare your statistics: a) expiration rate, b) list-to-sale price ratio, and c) average market time. If you excel against the competition in these categories, then you can offer better results.

Demonstrate that while your fee may be a bit higher, the net is also higher. “Mr. and Mrs. Seller, if the other company doesn’t sell your home at all, can’t negotiate a high sale price, or doesn’t sell it in a reasonable time, you end up losing money instead of gaining.”

Finally, ask the seller, “If our fees weren’t different, who would you hire?” Hopefully, they say “you!” Either way, ask why. Listen to their answer and if appropriate ask, “If you prefer us because of the additional benefits we offer, then wouldn’t you expect to pay more?”

If they don’t see a difference, then you have not established your value added benefit.

Sometimes you just have to let go of business. The sellers that cut your fee will usually be the most demanding, difficult and ungrateful. So treat radical price competition like a storm of locusts…you might just have to ride it out until they’re gone. Spend your time prospecting for good quality listings.

One of the ways to teach sellers the value of an agent is to send them the video titled “Selecting Your Real Estate Agent.” You may e-mail it for online viewing at www.RealEstateConsumerVideos.com. For a free trial, enter Promo Code: “ris.”

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

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

On this week’s Preforeclosure Daily Grind “Tip of the Week” we dive into how our end buyer’s lenders are cracking down on the inspection reports when they are trying to qualify for a 203,000 loans. Changes are happening everyday when it comes to trying to stabilize this economy, some good and some bad. Listen in as we tell you what to look for when getting our end buyer’s qualified for a 203K loan and much more. We also cover how Bank of America and their Equator.com system is now using automatic email notifications to update homeowners and 3rd party agents during each stage of the short sale process. Also we cover how Chase is updating and cleaning out their system and what to look for in the near future from them, a recent deal that blew up in our face and what happened and much more.

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Buyer’s Inspection Reports Are Crushing 203 Thousand Loans! is a post from: Short Sale Daily News

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1. End Buyer’s Lenders Are NOW Stopping Short Sale Transactions
2. Luxury Short Sales: Your Christmas in July
3. Is the Short Sale End in Sight?

Get ready for an onslaught of public service announcements campaigning the “highly successful”  Making Home Affordable Program.  The Advertising Council in partnership with HUD and the U.S. Treasury have decided to join forces to raise public awareness and push the benefits of the government’s foreclosure prevention programs.   Over 33,000 media outlets across the country are tagged to push the program.

The HAMP program has not been a raging success.   In fact, nearly 521,000 trial modifications have been cancelled and over 60% of those have been trials for six months or more.  Only 398,000 borrowers have been converted from trial loan-mods to permanent workouts.  Over 45% of cancelled trials are now in a an alternate modification program offered by the servicers.  But, of those, at least 6% are still falling back into a 60+ day delinquency status.  There are no official HAFA stats to report, but it should be more successful overall then HAMP.

HAFA is a much more dignified option for HAMP failing borrowers who truly wanted to keep the home but couldn’t meet the requirements.  So far, our team has had only positive HAFA experiences.  We have a 50% listing conversion rate for HAFA notified sellers, the approved list prices seem to be within 3-5% of FMV, and the servicers are pushing the contracts through the review process speedily.  Actually, we had one list, go under contract in 2 days, and was approved by the servicer 21 days later.  The approval would have been faster if not for a stubborn subordinate lien that required friendly coercion.

The PSAs will encourage more homeowners to explore their foreclosure options.  They especially want to reach homeowners at risk of default who are still current on their mortgage payments and still eligible for a HAMP modification. The commercials will direct them to the .gov site or to a HUD counselor hotline.

In marketing for motivated sellers, consider promoting the options and benefits in the HAFA program.  Post articles and ads similar to the PSAs that provide sellers information, answers to their questions, and possible solutions will vest them to you as a short sale expert.

Currently the Proptrackr team is offering users Pre-Approve HAFA Eligible motivated seller leads.  Be certain to fill out our HAFA survey to get a few more details.  Or go ahead and get started with these motivated HAFA seller leads with a Proptrackr  14 day trial.

Go to http://MakingHomeAffordable.gov/psa/about.html if you want to check out the coming public service announcements.

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The Government Goes Media on Foreclosure Alternatives is a post from: Short Sale Daily News

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1. Fannie Mae Says ‘Better NOT’ To Mortgage Walk-Aways
2. Is the Short Sale End in Sight?
3. Bail-Out Fall-Out = Short Sale Option

RISMEDIA, July 29, 2010—The ability to manage change, a structure that supports execution, employee involvement in decision making, alignment between leader actions and company values and priorities and company-wide coordination and cooperation are the five bridges that enable a company to execute well. But how do you go about building these bridges? First, you need to get comfortable with the fact that it’s a never-ending process. Then, you put certain time-tested tools and techniques in place and implement them relentlessly.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For more information, visit www.onpointconsultingllc.com.

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

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

RISMEDIA, July 27, 2010—The Home Buyer Tax Credit proved to be a valuable stimulus to the troubled U.S. housing industry. The only catch: those who qualified had to be under contract by April 30, 2010, and close by June 30 (editor’s note: at press time, the federal government had extended this closing deadline to September).

In the months leading up to the contract deadline, existing home sales increased steadily and, according to NAR data released in May, they jumped 7.6% from March to April, showing a 22.8% increase from April 2009 figures.

Now, with both tax credit deadlines past, real estate professionals can help maintain the recent momentum by keeping buyers motivated. Truth is, the tax credit was one of many incentives to enter the market in the past two years—and several of those advantages still exist for qualified buyers. Remind your customers that it’s still a great time to buy. Here are some key points to highlight for them:

Low Home Prices
Although there is widespread agreement in the industry that the housing market has reached the bottom, home prices aren’t expected to spike upward. Instead, they’re likely to skip along the bottom into 2011. They will continue to decline in some markets and creep up in others. As long as buyers remain diligent in the home search over the coming months, possible pricing fluctuations won’t have a dramatic effect on their property options.

Low Interest Rates
Interest rates on 30-year, fixed-rate mortgages hit a five-month low of 4.93% in May, and as of early June the rates were holding steady below 5%. Financial concerns over the growing debt crisis in Europe have stemmed discussions in the U.S. of raising rates. The historically low rates will save home buyers thousands and thousands of dollars over the life of a loan, which arguably is reason enough to enter the market.

Other Tax Benefits
The U.S. Home Buyer Tax Credit was temporary, but there are other tax benefits that buyers can continue to count on for the foreseeable future. Property taxes, mortgage interest payments and mortgage insurance premiums are qualified deductions that can help reduce many homeowners’ tax liability. For eco-conscious homeowners, purchasing energy-efficient appliances and making other green upgrades can mean a tax credit up to ,500. For more information, be sure to visit www.irs.gov or consult a tax professional.

Encourage your buyer clients to focus on today’s favorable home buying conditions, instead of looking back with regret. It’s worth sitting down with them to recap the benefits of buying over renting. Tax credit or no tax credit, homeownership is part of the America dream—and it’s alive and well.

Margaret Kelly, CRB, is chief executive officer of RE/MAX LLC.

For more information, visit www.remax.com.

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

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

RISMEDIA, July 26, 2010—An effective property listing provides renters all of the details necessary to understand if your property is a good fit for them. Making a good first impression is critical to hook prospective renters and get them interested in learning more about your property. But the second step, providing all the details and information renters commonly need and want in order to take the next step, is equally important.

The experts at Rent.com suggest the following tips to build an effective property listing:

Compare your listing to other competitive listings. This will help you understand how best to differentiate your property and make your listing stand out in the crowd. Look at how comparable properties are marketing themselves and what they are offering. Then think about what features and amenities your property has that are unique and different from the others. Call attention to these aspects through descriptive text and photos to build a picture for the renter about how life would be better at your property.

Choose your property images carefully. Leverage the best photos of your property and be sure to include both exterior and interior shots. Your primary image may be the only image a renter sees to determine if they want to visit your property. It should be colorful, sharp and distinct from other comparable listings. Renters have told us that photos of a rental unit’s interior are extremely important to them so don’t skimp here. Make sure you provide enough interior photos to completely show each room of the rental unit and any details that make your rental property unique.

Create impactful headlines. We recommend that your headline highlights three aspects of your property—your location, an amenity and an interior feature—in order to give renters a well-rounded view of what you have to offer. Use specific and descriptive words instead of generalities to grab the renter’s attention and make your property relevant. For example, instead of highlighting location with generic words like “convenient location,” get more specific such as “within 3 miles of upscale shopping and dining” or “easy access to I-40 and I-240.” When calling out an amenity of the property, use more descriptive words to draw a picture before they even have a chance to view your photos. For example, instead of “sparkling pool” you might say “resort style pool with expansive sundeck.” As for interior features, again, specifics are more tangible. Instead of “spacious floor plans” try something like “up to 1,200 square feet” or instead of “renovated apartments” you might say, “brand new kitchen appliances and fixtures.” A strong sample headline would go as follows, “Within 3 Miles of Upscale Shopping & Dining, Resort-style Pool with Expansive Sundeck and Brand New Kitchen Appliances & Fixtures.”

Include floor plans and complete property details. Floor plans are the second most requested images behind interior photos for rental units. Renters want as much information as possible to help them understand if the property will work for their space requirements, furniture and lifestyle. Without enough detail, they may opt to pass over your listing entirely. Aside from the basic information on number of bedrooms/bathrooms and rental price, make sure to include information on square footage, security deposits, application fees, pet policies and fees, parking, whether or not utilities are included in the rent and any special amenities on the property.

Advertise move-in specials if you have them. By displaying your move-in specials in your online ads, you provide an instant incentive for someone to visit your property. If you have a special offer for new tenants, make sure to broadcast that message in your online advertising to drive traffic to your property, increase leases and maximize the overall impact of your promotional campaign.

Rent.com is the nation’s #1 Internet listing site (ILS) in the rental housing industry, enabling renters to find a residential rental property online using a free robust search tool. Rent.com has the most online renter traffic and the largest inventory of contracted property listings. GET 50% OFF OUR NEW FLAT-RATE LISTING FEE! Try Rent.com today and take advantage of this limited time special offer.

For more information, click here.

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

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

RISMEDIA, July 24, 2010—(MCT)—The outdoor kitchen is rapidly becoming the social hub of the home, much as the indoor kitchen is the favorite gathering place for family and friends. The trend is especially strong in areas where the climate favors outdoor living almost year-round.

“It’s a hot item,” said Scott Redmon, owner of Alfresco Living in Maitland, Fla. “And the outdoor kitchen is becoming a lot more than a grill and a sink in the corner of the porch. It’s a whole entertainment system. People have a higher expectation for their exterior spaces since HGTV came around.”

Outdoor kitchens are popular because they are fun to live with, said Russ Faulk, vice-president of product development at Kalamazoo Outdoor Gourmet in Kalamazoo, Mich. “They add to the quality of life for the homeowner. Preparing a meal outdoors is not a chore, it’s an occasion, a reason to have friends over and enjoy the process.” In addition, an outdoor kitchen expands a home’s living space and adds to its value, he said. “The return on your investment is comparable to an indoor kitchen redo.”

Since the economic downturn, “People have been unable to sell their homes, so they are starting to upgrade with better landscaping and outdoor kitchens, spending more time at home,” said Sue Fern, manager of the Florida chapter of the American Society of Landscape Architects.

The built-in grill was the start of the outdoor-kitchen trend, said Faulk. “Then came the sink, the refrigerator, a counter for food prep, cabinets for storage—pretty much what you’d have in an indoor kitchen.” As more equipment is added, outdoor “rooms” are becoming larger and more covered, he said. Seating areas are added, along with outdoor TV sets, fire pits and water features.

The grill—fired by gas, wood or charcoal—is still the heart of the outdoor kitchen. Especially popular are hybrid grills, which can be switched from gas to wood or charcoal, depending on what is being cooked, said Faulk. “There’s nothing like grilling fish over an oak fire.”

Pizza ovens are starting to threaten the grill’s reign as king of the outdoor kitchen. Oven designs range from large, wood-fired brick and clay ovens that take several hours to heat up, to compact countertop models fired by gas that are ready for baking pizzas in 20 minutes.

Also gaining popularity in outdoor kitchens are keg-tappers, wine chillers, ice makers and warming cabinets.

When designing an outdoor kitchen, be sure to look for low-maintenance equipment, said Faulk, “or you defeat the purpose of carefree outdoor cooking.”

Also, make sure any cabinetry is designed to keep the contents clean and dry in inclement weather; install good task and ambient lighting and choose counter-top material that is stain- and grease-resistant and stays cool in direct sunlight.

“Get counter-top samples, leave them in the sun and see how hot they get,” advised Faulk. “Heat-retention is not always related to color. Some light colors get hotter than dark colors.”

He also offers these cost-cutting tips: “Design the outdoor kitchen against the house to reduce the cost of getting utilities to the space. And buy the best grill you can afford.”

When designing an outdoor kitchen, “Consider how the space will be used: as a personal refuge or a place to entertain and be social; as a place to cook and eat, or to drink and socialize,” said Eduardo Xol, exterior designer on Extreme Makeover: Home Edition and celebrity designer for hayneedle.com.

And remember, indoor-outdoor living helps balance the soul. It keeps you connected with nature and helps you become more aware of living green.

(c) 2010, The Orlando Sentinel (Fla.).

Distributed by McClatchy-Tribune Information Services.

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

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

RISMEDIA, July 23, 2010—(MCT)—With a broad smile and the stroke of a pen, President Barack Obama capped a contentious 18-month struggle and signed into law the broadest revamp of financial regulation since the Great Depression.

“Passing this bill was no easy task. To get there, we had to overcome the furious lobbying of an array of powerful interest groups and a partisan minority determined to block change,” Obama said in a pre-signing speech, surrounded by cheering congressional leaders and administration members.

Alternating between hitting Wall Street and acknowledging its economic importance, the president said that the historic Restoring American Financial Stability Act of 2010 seeks to strike a balance that would protect consumers while allowing the vital financial sector to prosper.

“The fact is the financial industry is central to our nation’s ability to grow, to prosper, to compete and to innovate. This reform will foster innovation, not hamper it. It is designed to make sure everybody follows the same set of rules,” he said. “Unless your business model depends on cutting corners or bilking customers, you’ve got nothing to fear from reform.”

The signing marked the third major legislative accomplishment for Obama, after an 0 billion stimulus and tax-cut package and a regulatory revamp of the health care sector. Still, the president has slumped in the opinion polls, dragged down by a sluggish economy. Polls also suggest that the broader public is ambivalent about the new measure.

To combat that, Obama and congressional Democrats went to extremes to highlight all the consumer provisions in the legislation. There are numerous measures to combat predatory lending, and the president invited borrower Robin Fox of Rome, Ga., to the speech. She’d been hit with unexpected interest rate increases on a credit card balance. “With this law, unfair rate hikes, like the one that hit Robin, will end for good,” Obama said.

Underscoring the historic nature of the legislation, which updates many rules that date to the 1930s, the televised signing ceremony wasn’t at the White House but at the Ronald Reagan Building, in a large auditorium where about 400 invited guests could bask in the accomplishment.

The legislation seeks to fix much of what went wrong in the lead-up to the nation’s deep financial crisis. It gives regulators the power to dissolve large, interconnected financial institutions and allows the Federal Reserve to break up companies that it thinks are so large that their failure would pose a risk to the U.S. and global economy.

The lack of this authority forced the Bush administration and a Democratic-led Congress to choose unpopular bank bailouts over a disruptive bankruptcy process that Fed Chairman Ben Bernanke warned could have led to a global economic depression.

“The bill isn’t perfect, since it represents what was politically achievable in an election year. But it sets some important starting points for more detailed work in areas where oversight has been lacking, such as viewing risk from a systemic point of view and increased consumer protection,” said Scott McCleskey, the author of the new book When Free Markets Fail, which seeks to explain the crisis in layman’s terms. “In the end, though, the crisis made abundantly clear the fact that we need more regulation because the markets have become too complex to regulate themselves.”

For ordinary Americans, the legislation will be felt most directly through the creation of a new and independent Bureau of Consumer Financial Protection. It will police credit extended to consumers, be it mortgages, credit cards, student loans, auto loans or even payday loans.

“For the first time, families will have a tough, independent cop in Washington to help clear out the tricks and traps hidden in consumer credit agreements,” Elizabeth Warren, a Harvard University professor who’s credited with developing the idea of the bureau, said in a statement.

Gail Hillebrand, a senior attorney for the advocacy group Consumers Union, added that “millions of Americans have been hit by shady loans, hidden fees and surprise rate increases, and this Consumer Financial Protection Bureau will take dead aim at these kinds of problems.”

Business groups frowned on the new law. “This legislation, while drafted with the best intentions, paints the U.S. business community with a broad brush and will have many unintended consequences for the more than 12,000 nonfinancial publicly traded companies,” Larry Burton, the executive director of the Business Roundtable, said in a statement.

The U.S. Chamber of Commerce, which aggressively lobbied against the legislation, didn’t pull punches in its statement upon signing. “Such a broad, sweeping bill epitomizes a law with unintended consequences that creates more uncertainty for American businesses,” said Thomas J. Donohue, the chamber’s president and CEO. “For years the chamber has called for reform that modernizes our financial system. Yet this law is like adding new paint on an old car; it’s still not going to run at the pace and with the agility that is currently demanded.”

Regulators will sit together on a special council to collectively study risks to the broader financial system. They’ll be empowered to order that banks keep more capital on hand to guard against future losses, and they’ll have knowledge that they didn’t have before about the complex financial instruments called over-the-counter derivatives. The size of the market for these private bets between parties is valued in the trillions of dollars, yet these deals largely have been hidden from regulators.

Now, most trading in these complex instruments will be done on public exchanges or clearinghouses, and regulators will have the authority to limit a financial player’s overall holdings in contracts for oil, natural gas, wheat or other commodities if it appears that anyone is seizing so much of the market that prices could be manipulated.

“It gives us the transparency, tools and teeth we need to better regulate the markets we already oversee and to bring light to the more than 0 trillion over-the-counter markets which are currently unregulated,” said Bart Chilton, a commissioner on the Commodity Futures Trading Commission (CFTC). “Many key items will be decided in the near future: How do we actually oversee and regulate the OTC markets? How do we implement position limits? And how are we going to use some of these new professional-grade regulatory tools to police these markets? For example, CFTC has had only one successful manipulation prosecution in 35 years. The law was broken but the bill gives us new authority to go after disruptive trading practices.”

(c) 2010, McClatchy-Tribune Information Services.

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