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November 28 The food we eat, the air we breathe, the water we drink...
November 26 More Companies Phasing Out Retirement OptionNEW YORK—With pension funds dwindling as retirees enjoy longer, more capable lives, many businesses have opted to freeze their workers' employment status and keep them on the job through their sunset years. "Under the new approach, our employees gain the advantage of lifelong job security," Hewlett-Packard CEO and president Mark Hurd said. "Even though our workers will no longer be able to collect a pension, they will receive checks as long as they are able to be wheeled into work and punch the clock." Hewlett-Packard, Verizon, and IBM are just a few of the Fortune 500 companies that are phasing out the retirement option in favor of "indefinite-employment" plans, under which thousands of qualified workers will continue to earn yearly stipends in exchange for work. "To the list of outmoded and costly business practices such as health insurance, overtime pay, and lunch breaks, add age-based quitting," corporate management consultant Robert Hopgood said. "Post-retirement-age labor is great for companies, and it's a great way for seniors to stay active." American companies are following the model set by General Electric, which in the 1970s began requiring departing employees to give 45 years' notice. Although the paradigm shift is highly admired among cost-conscious managers in the business world, employees question its practicality. "I don't need to support my family anymore," said 93-year-old Alfred Nuzzo, who has worked as a products inspector for GE's small-appliance division for 68 years. "I have a dead wife and three dead kids." Multitasking while dying on the job can take its toll. GE customer-service representative Esther Fischbeck, 88, is juggling career, widowhood, and early-stage Alzheimer's disease. "What is this?" said Fischbeck, clawing at her phone headset. "When do I go home?" Responding to critics who say that phasing out retirement shows a lack of concern for workers, IBM CEO Samuel Palmisano argued that if companies didn't care about their elderly employees, they would not keep them on the payroll. "We frequently honor their birthdays with celebrations, and our going-away parties are always respectful and appropriately somber affairs," Palmisano said. "IBM is like a family—you don't leave a family." Lawrence Babbio Jr., president of Verizon, defended his company's newly enstated non-retirement plan. "We believe in our workers," Babbio said. "Everyone is valuable and has something to offer, and we're not going to phase them out just because they only have a few years left to live. Even vegetative employees can serve the company by donating valuable, hard-to-find organs to our younger executives. And our comatose employees are very useful as product testers." Saying that an older person in a wheelchair "shouldn't be pushed into a corner, but in front of a desk," Hewlett-Packard's Hurd said lifetime employment will make his company more inclusive. "There's a place at our organization for everyone—the young, the old, the mentally incapacitated, the moribund," Hurd said. "All we ask of them is to work a regular 40-hour shift and honor our 'no mercy killing' policy." He added, "We pride ourselves on the fact that, even after death, our employees can continue to contribute to the company's growth. In an uncertain world, we offer real job security—from training to the grave." Supervisor Gladys Schiele, 93, inspects the work of data-entry clerk Jack Vandenbogen, 87. http://www.theonion.com/content/node/44679 Teen Lands Job With Fortune 500 CompanyLOWELL, MA–Jeremy Novato, a recent graduate of a well-respected Lowell high school, has secured a position with the McDonald's Corporation, a high-ranking Fortune 500 company. Recent McDonald's hire Jeremy Novato at the Fortune 500 company's Exeter Road branch. "I'm tremendously excited to have this opportunity to work with the world's number-one restaurant chain," said Novato, 18, pouring ketchup into a large metallic pump dispenser at the $41 billion company's Exeter Road branch Monday. "I am determined to prove that their difficult decision to go with me over Dashanté Simmons was not a mistake." According to Novato, it was McDonald's impressive Fortune 500 rank of 132–along with the fact that a branch office is located just down the street from his parents' house, where he resides--that convinced him to sign with the company. "I had competing offers from both Dairy-Freez and Lube-In-10, but neither of those companies makes the list of top-grossing Massachusetts businesses, much less the Fortune 500," Novato said. "Dairy-Freez actually offered me a compensation package that was slightly better than the one I stood to receive at McDonald's, with a base salary of $6.25 an hour and a 50-cent raise after the first month, plus a $25 signing bonus. But in the final analysis, I felt it was in my long-term best interest to go with a global leader." Guaranteed at least 32 hours a week in his new post, Novato said he is "extremely enthused by the numbers [he's] seen" in McDonald's financial summaries. "For the six months ending June 6, total revenues for the company rose 7 percent to $6.9 billion," Novato said. "Net income rose 6 percent to $976.8 million. That's healthy growth." Even more encouraging, Novato said, is the company's aggressive expansion into overseas markets. "Earlier this year, McDonald's opened a restaurant in French Guiana, bringing the total number of nations in which it operates to 119," Novato said. "And, as John Ivankoe of J.P. Morgan recently noted, McDonald's stands to be one of the major U.S. players in the Asian Pacific region and Latin America in the coming decade. That's very exciting for a new member of the brain trust like myself." Despite Novato's tender age, McDonald's executives are confident that he can bring a new dimension to the company. "We're very happy to have Jeremy on board," said Gabe Diaz, manager of the Exeter Road location. "I saw a lot of extra-curricular activities on his application, and that's always a good sign." In his first days on the job, Novato has already shown great promise. He has absorbed vital information about how the Exeter Road link in McDonald's chain of stores works, including where the brooms are kept and how to break down the cardboard boxes for recycling pick-up. "Right now, I'm just trying to take in as much as I can, watching everything that goes on around me," said Novato, who, as a drive-thru cashier, will directly handle a portion of the company's projected year-2001 revenue of $14 billion. "But hopefully soon, I can get in there and begin to effect some real changes of my own." Novato's plans include a full-scale restructuring of the walk-in freezer to get the chicken-patty bags off the floor and the installation of a paper-towel dispenser above the sink in the grill area. "I can't tell you how energizing it is to be part of a dynamic company that controls a whopping 16 percent of the U.S. fast-food market," Novato said. "There's just so much to look forward to." McDonald's CEO Jack Greenberg agreed. "We just won a competitive bid with the Massachusetts Turnpike Authority to open 11 new food-service plazas," said Greenberg, speaking from the company's Oak Brook, IL, headquarters. "Those outlets should translate to an additional $50 million in annual sales. In addition, we recently reached an exclusive agreement with Hasbro to sell Hello Kitty and Transformers Beast Machines figures." Novato has already been tabbed to play a role in the multimillion-dollar Hasbro deal, assigned the important task of folding the specially designed Hello Kitty Happy Meal boxes. "If handled correctly, this in-store promotion could be as successful as the one for Teenie Beanie Babies, which resulted in mile-long lines out the door," Novato said. "That would mean a strong final quarter heading into 2001 and plenty of extra weekend hours for me." http://www.theonion.com/content/node/38690 Now what?The obvious answer to “Now what?” is
“Who the hell knows?” by Dave Hackel November 24 US officials flunk test of American history, economics, civicsUS elected officials scored abysmally on a test measuring their civic knowledge, with an average grade of just 44 percent, the group that organized the exam said Thursday. Ordinary citizens did not fare much better, scoring just 49 percent correct on the 33 exam questions compiled by the Intercollegiate Studies Institute (ISI). "It is disturbing enough that the general public failed ISI's civic literacy test, but when you consider the even more dismal scores of elected officials, you have to be concerned," said Josiah Bunting, chairman of the National Civic Literacy Board at ISI. "How can political leaders make informed decisions if they don't understand the American experience?" he added. The exam questions covered American history, the workings of the US government and economics. Among the questions asked of some 2,500 people who were randomly selected to take the test, including "self-identified elected officials," was one which asked respondents to "name two countries that were our enemies during World War II." Sixty-nine percent of respondents correctly identified Germany and Japan. Among the incorrect answers were Britain, China, Russia, Canada, Mexico and Spain. Forty percent of respondents, meanwhile, incorrectly believed that the US president has the power to declare war, while 54 percent correctly answered that that power rests with Congress. Asked about the electoral college, 20 percent of elected officials incorrectly said it was established to "supervise the first televised presidential debates." In fact, the system of choosing the US president via an indirect electoral college vote dates back some 220 years, to the US Constitution. The question that received the fewest correct responses, just 16 percent, tested respondents' basic understanding of economic principles, asking why "free markets typically secure more economic prosperity than government's centralized planning?" Activities that dull Americans' civic knowledge include talking on the phone and watching movies or television -- even news shows and documentaries, ISI said. Meanwhile, civic knowledge is enhanced by discussing public affairs, taking part in civic activities and reading about current events and history, the group said. http://news.yahoo.com/s/afp/20081120/od_afp/ushistoryeducationoffbeat Here is a link to the old test, how did you do? November 20 Think twice before giving gift cards for the holidays...The Gift
giving season is around the corner, if you are planning on giving gift cards, around
the holidays, you need to be careful that the cards will be honored after the
holidays. Several retail
companies are going out of business, many are closing stores after the end of
the year, but they are still selling gift cards, eventhough the cards will be worthless January 1. There
is no law preventing them from doing this. On the
contrary, it is referred to as 'Bankrupcy Planning ' . Below is a
partial list of stores that you need to be cautious about. Circuit City (filed Chapter 11) Ann Taylor- 117 stores nationwide closing Lane Bryant, Fashion Bug ,and Catherine's to close 150 stores nationwide Eddie Bauer to close stores 27 stores and more after January Cache will close all stores Talbots closing down specialty stores J. Jill closing all stores (owned by Talbots) Pacific Sunwear (also owned by Talbots) GAP closing 85 stores Footlocker closing 140 stores more to close after January Wickes Furniture closing down Levitz closing down remaining stores Bombay closing remaining stores Zales closing down 82 stores and 105 after January Whitehall closing all stores Piercing Pagoda closing all stores Disney closing 98 stores and will close more after January. Home Depot closing 15 stores 1 in NJ ( New Brunswick ) Macys to close 9 stores after January Linens and Things closing all stores Movie Galley Closing all stores Pep Boys Closing 33 stores Sprint/Nextel closing 133 stores JC Penney closing a number of stores after January Ethan Allen closing down 12 stores. Wilson Leather closing down all stores Sharper Image closing down all stor~s K B Toys closing 356 stores Loews to close down some stores Dillard's to close some stores
Act Now to Protect Endangered Hawaiian Monk Seals
November 18 You'd better watch out: Gift cards can be lumps of coalPeer into any family's closets and you'll find the Gifts of Christmas Past. Scented candles. Reindeer sweaters. A stuffed bass that sings Don't Worry, Be Happy. Gift cards are designed to reduce closet clutter. They're always the right color, and they're never too large or too small. While the National Retail Federation estimates that gift card sales will drop about 6% this year — reflecting a slowdown in overall spending this holiday season — nearly two-thirds of consumers plan to buy them, according to a survey by Deloitte. And 55% of consumers say they would like to receive a gift card, according to the NRF. TELL US: As retailers struggle to survive, are you worried about buying gift cards this year? But the warm feelings generated by a gift card could turn cold in a hurry if the retailer that issued the card goes out of business. Gift card holders have few rights when a retailer files for bankruptcy. And with retail bankruptcies expected to rise next year, that's a real concern. Some consumers have already been burned. When Sharper Image filed for bankruptcy earlier this year, gift card holders were informed they could no longer use their cards. The company later asked the court to allow it to accept gift cards if holders spent twice the value of the gift card on a single purchase. Consumers Union estimates that unused Sharper Image gift cards totaled $20 million. Consumers who held gift cards for Bombay Co., which filed for bankruptcy protection last year, didn't fare much better. In August, the retailer won approval from the bankruptcy court to pay off gift card holders 25 cents on the dollar. Tweeter, a consumer electronics chain that filed for Chapter 11 bankruptcy in early November, originally planned to stop accepting gift cards on Nov. 15. After several state attorney generals intervened, the company agreed to accept gift cards through Dec. 31, or until its stores close. When a retailer files for bankruptcy-court protection, gift card holders are considered unsecured creditors, says Michelle Jun, attorney for Consumers Union, an advocacy group. It's up to the retailer to ask the bankruptcy court to allow it to continue accepting gift cards. If the retailer doesn't make that request, or the court denies it, gift card holders have to get in line with all the businesses and individuals that have claims against the retailer. "If you have a $50 gift (card), it's pretty burdensome" to file a claim for relief, Jun says. In September, Consumers Union and several other consumer groups petitioned the Federal Trade Commission to improve consumer protections for gift card holders. The groups asked the FTC to require retailers to segregate funds from gift card sales in a trust account, and use that money to honor gift cards as long as the stores remained open, unless ordered to do otherwise by a bankruptcy court. So far, the FTC hasn't responded to the petition, Jun says. Consumers Union recommends that consumers give cash this year instead of gift cards. "It's hard to know what retailer will sink tomorrow," Jun says. For some givers, though, sticking a couple of twenties in an envelope seems awfully cold. If you're determined to give gift cards this year, choose wisely. Some tips: Consider the financial health of the retailer Last week, Circuit City joined the growing number of retailers seeking Chapter 11 bankruptcy protection. The filing will allow the electronics giant to secure more financing and get out of some lease commitments. In announcing the filing, Circuit City said it will continue to honor outstanding gift cards, and will continue to sell them. But Circuit City also announced that it's closing 155 stores, which means some card holders will have a harder time finding a place to redeem them. And if the company's efforts to reorganize fail, the cards could become worthless. When Linens 'n Things filed for Chapter 11 bankruptcy in May, it said it would continue to honor gift cards in all of its stores. But consumers who still have gift cards for the retailer will have a hard time redeeming them: After failing to find a buyer, Linens 'n Things announced that it's liquidating its merchandise and closing its stores. "If you read about a retail store teetering on the brink, you probably shouldn't buy a gift card from them," says Bill Hardekopf, chief executive of LowCards.com. Opt for 'open loop' gift cards The major credit card issuers — American Express, MasterCard, Discover and Visa — all offer gift cards. Most mall operators also offer gift cards that can be used in all of their stores. These cards can be used anywhere, eliminating the need to gauge the financial health of a specific retailer. But they also contain more restrictions than gift cards issued by individual retailers. Visa gift cards expire after one year, MasterCard gift cards after 24 months, according to Bankrate.com's annual survey of gift cards. American Express gift cards have no expiration date but impose a $2 monthly service fee after 12 months (the service fee is deducted from the balance on the card). None of the gift cards from the nation's 25 largest retailers have expiration dates, according to the National Retail Federation. Most open-loop issuers also charge a fee to buy their cards. Fees range from $3.95 to $4.95 per card, depending on the bank that's issuing the card, according to Bankrate.com. If you're buying gift cards for a large number of people, those fees can add up. Give gift cards for necessities In Deloitte's annual holiday shopping survey, 17% of consumers surveyed said they planned to buy gift cards for gasoline, up from 13% last year. A gift card for gas "isn't exactly an exciting gift, but it's very practical, and in these economic times, probably very much appreciated by the people getting it," says Stacy Janiak, vice chairman and U.S. retail leader for Deloitte. Most grocery stores and drugstores also offer gift cards. Give gift cards that can be redeemed online Hilco Appraisal Services, a large liquidation firm, projected last week that 14,000 retail stores, ranging from mom and pop businesses to big chain outlets, will close next year. That means consumers in some parts of the country will have a harder time finding a place to redeem their gift cards. This year, though, a majority of retailers allow consumers to redeem their gift cards in stores or online, according to Bankrate.com. In its survey of 20 large retailers, only five — CVS, Walgreens, Home Depot, Marshalls and T.J. Maxx — didn't allow their gift cards to be redeemed online. And what if you receive gift cards this holiday season? Don't let them gather dust, says Ellen Cannon of Bankrate.com. "Spend them by New Year's." http://www.usatoday.com/money/perfi/columnist/block/2008-11-17-gift-cards-cash-block_N.htm November 15 Racism is alive and well in the good old US of ACross burnings. Schoolchildren chanting "Assassinate Obama." Black figures hung from nooses. Racial epithets scrawled on homes and cars. Incidents around the country referring to President-elect Barack Obama are dampening the postelection glow of racial progress and harmony, highlighting the stubborn racism that remains in America. From California to Maine, police have documented a range of alleged crimes, from vandalism and vague threats to at least one physical attack. Insults and taunts have been delivered by adults, college students and second-graders. There have been "hundreds" of incidents since the election, many more than usual, said Mark Potok, director of the Intelligence Project at the Southern Poverty Law Center, which monitors hate crimes. One was in Snellville, Ga., where Denene Millner said a boy on the school bus told her 9-year-old daughter the day after the election: "I hope Obama gets assassinated." That night, someone trashed her sister-in-law's front lawn, mangled the Obama lawn signs, and left two pizza boxes filled with human feces outside the front door, Millner said. She described her emotions as a combination of anger and fear. "I can't say that every white person in Snellville is evil and anti-Obama and willing to desecrate my property because one or two idiots did it," said Millner, who is black. "But it definitely makes you look a little different at the people who you live with, and makes you wonder what they're capable of and what they're really thinking." Potok, who is white, said he believes there is "a large subset of white people in this country who feel that they are losing everything they know, that the country their forefathers built has somehow been stolen from them." Grant Griffin, a 46-year-old white Georgia native, expressed similar sentiments: "I believe our nation is ruined and has been for several decades and the election of Obama is merely the culmination of the change. "If you had real change it would involve all the members of (Obama's) church being deported," he said. Change in whatever form does not come easy, and a black president is "the most profound change in the field of race this country has experienced since the Civil War," said William Ferris, senior associate director of the Center for the Study of the American South at the University of North Carolina. "It's shaking the foundations on which the country has existed for centuries." "Someone once said racism is like cancer," Ferris said. "It's never totally wiped out, it's in remission." If so, America's remission lasted until the morning of Nov. 5. The day after the vote hailed as a sign of a nation changed, black high school student Barbara Tyler of Marietta, Ga., said she heard hateful Obama comments from white students, and that teachers cut off discussion about Obama's victory. Tyler spoke at a press conference by the Georgia chapter of the NAACP calling for a town hall meeting to address complaints from across the state about hostility and resentment. Another student, from a Covington middle school, said he was suspended for wearing an Obama shirt to school Nov. 5 after the principal told students not to wear political paraphernalia. The student's mother, Eshe Riviears, said the principal told her: "Whether you like it or not, we're in the South, and there are a lot of people who are not happy with this decision." Other incidents include: —Four North Carolina State University students admitted writing anti-Obama comments in a tunnel designated for free speech expression, including one that said: "Let's shoot that (N-word) in the head." Obama has received more threats than any other president-elect, authorities say. — At Standish, Maine, a sign inside the Oak Hill General Store read: "Osama Obama Shotgun Pool." Customers could sign up to bet $1 on a date when Obama would be killed. "Stabbing, shooting, roadside bombs, they all count," the sign said. At the bottom of the marker board was written "Let's hope someone wins." - — Racist graffiti was found in places including New York's Long Island, where two dozen cars were spray-painted; Kilgore, Texas, where the local high school and skate park were defaced; and the Los Angeles area, where swastikas, racial slurs and "Go Back To Africa" were spray painted on sidewalks, houses and cars. — Second- and third-grade students on a school bus in Rexburg, Idaho, chanted "assassinate Obama," a district official said. — University of Alabama professor Marsha L. Houston said a poster of the Obama family was ripped off her office door. A replacement poster was defaced with a death threat and a racial slur. "It seems the election brought the racist rats out of the woodwork," Houston said. — Black figures were hanged by nooses from trees on Mount Desert Island, Maine, the Bangor Daily News reported. The president of Baylor University in Waco, Texas said a rope found hanging from a campus tree was apparently an abandoned swing and not a noose. — Crosses were burned in yards of Obama supporters in Hardwick, N.J., and Apolacan Township, Pa. — A black teenager in New York City said he was attacked with a bat on election night by four white men who shouted 'Obama.' — In the Pittsburgh suburb of Forest Hills, a black man said he found a note with a racial slur on his car windshield, saying "now that you voted for Obama, just watch out for your house." Emotions are often raw after a hard-fought political campaign, but now those on the losing side have an easy target for their anger. "The
principle is very simple," said BJ Gallagher, a sociologist and co-author
of the diversity book "A Peacock in the Land of Penguins." "If I
can't hurt the person I'm angry at, then I'll vent my anger on a substitute,
i.e., someone of the same race." "We saw the same thing happen after
the 9-11 attacks, as a wave of anti-Muslim violence swept the country. We saw
it happen after the Rodney King verdict, when Los Angeles blacks erupted in
rage at the injustice perpetrated by 'the white man."' "It's as
stupid and ineffectual as kicking your dog when you've had a bad day at the
office," Gallagher said. "But it happens a lot."
November 12 The WhaleIf you read the front page story of the SF Chronicle, you would have read about a female humpback whale who had become entangled in a spider web of crab traps and lines. She was weighted down by hundreds of pounds of traps that caused her to struggle to stay afloat. She also had hundreds of yards of line rope wrapped around her body, her tail, her torso, a line tugging in her mouth. A fisherman spotted her just east of the Farralone
Islands (outside the Golden Gate ) and radioed an
environmental group for help. Within a few hours, the rescue team arrived and
determined that she was so bad off, the only way to save her was to
dive in and untangle her... a very dangerous
proposition. One slap of the tail could kill a rescuer. Some said it was the most incredibly beautiful experience of their lives. The man who cut the rope out of her mouth says her eye was following him the whole time, and he will never be the same. May you, and all those you love, be so blessed and fortunate to be surrounded by people who will swim with you in the deep waters that may engulf you, and who will help you become untangled from the things that bind you. And, may you always know the joy of giving and receiving gratitude. I pass this on to you in the same spirit. November 11 Women over 40 by Andy Rooney As I grow in age, I value women over 40 most of all. Here are just a
few reasons why: A woman over 40 will never wake you in the middle of the night and ask, 'What are you thinking?' She doesn't care what you think. If a woman over 40 doesn't want to watch the game, she doesn't sit around whining about it. She does something she wants to do, and it's usually more interesting. Women over 40 are dignified. They seldom have a screaming match with you at the opera or in the middle of an expensive restaurant. Of course, if you deserve it, they won't hesitate to shoot you if they think they can get away with it. Older women are generous with praise, often undeserved. They know what it's like to be unappreciated. Women get psychic as they age. You never have to confess your sins to a woman over 40. Once you get past a wrinkle or two, a woman over 40 is far sexier than her younger counterpart. Older women are forthright and honest. They'll tell you right off if you are a jerk, if you are acting like one. You don't ever have to wonder where you stand with her. Yes, we praise women over 40 for a multitude of reasons. Unfortunately, it's not reciprocal. For every stunning, smart, well-coiffed, hot woman over 40, there is a bald, paunchy relic in yellow pants making a fool of himself with some 22-year old waitress. Ladies, I apologize. For all those men who say, 'Why buy the cow when you can get the milk for free? here's an update for you. Nowadays 80% of women are against marriage. Why? Because women realize it's not worth buying an entire pig just to get a little sausage! Andy Rooney Start a sea of change Ocean Conservancy
Why and How LinkedIn Works for Business ProfessionalsTips and Data
LinkedIn wasn't always one of the social networks known for
having all the bells and whistles. In fact, only until recently, it didn't have
an applications
platform, an ad
network, or other features that make sites like Facebook and MySpace so
popular. The
study found a direct relationship between the number of connections and high
personal income. Those members with personal incomes between $200K-$350K were
seven times more likely than others to have over 150 connections.
"CNBC.com could run a feature article on how the
recession is affecting workers and quote from some of the best answers,"
says Meiners. "If you were featured in the article, it should show up
somewhere on your LinkedIn profile with a link and recognition that you were
quoted in a story. In could help build the reputation of members of LinkedIn,
which could in turn help their job searches and careers." 1. Upload your address book. "The great thing about only connecting to people you
know, trust, and have experience working with, is that when you need to find
that expert, get that answer, reference check a potentially great hire, get
that introduction, then the trusted network of people you’ve proactively
created on LinkedIn can help you out," writes Crane. "I find that a simple
but useful analogy is a tapestry. The stronger and tighter the individual
threads, the stronger the overall piece of cloth becomes."
http://www.webpronews.com/topnews/2008/11/10/why-and-how-linkedin-works-for-business-professionals November 10 Homeowner denial: My home is gaining value Realtors struggle to convince people that their home price
has fallen, too
The housing market may have gone bust, but many homeowners are still living in a bubble. Despite dismal housing headlines and reports showing falling prices nationwide, owners in some once-hot areas still believe their home is gaining value or at least holding its own. And by hanging onto too-high expectations, sellers are unwittingly keeping the market from finding a bottom. Real estate professionals across the country are reporting difficulty convincing sellers the true market value of their homes. "It's like pulling teeth in this market," said Twyla Rist of Reece & Nichols Realtors in Kansas City, where prices are off between 7 percent and 15 percent. "Even with everything being said, you still have people that think my house is better than everybody else's." A recent Coldwell Banker report showed that more than three-quarters of its real estate agents surveyed said most sellers have unrealistic initial listing prices for their homes. Likewise, an unscientific study released last week by real-estate Web site Zillow.com found that half of homeowners polled think their home's price has increased or stayed the same in the past year. "We expected people to get a little more in touch with reality especially over the summer, because you couldn't turn on the TV or read the newspapers without seeing that home prices are falling," said Amy Bohutinsky, a spokeswoman for Zillow.com. "It was very surprising to see this kind of disconnect." In fact, the median sales price of an existing home dropped 9 percent to $191,600 in September from a year ago, according to the National Association of Realtors. It took John Cicero and his wife an appraisal, some convincing by their real estate agent and some hard-to-swallow facts to get them to lower the $525,000 listing price on their five-bedroom home in Valrico, Fla. They closed two weeks ago for about $380,000. "We didn't really understand the severity of the market," Cicero said. "We lost close to $100,000 in equity so we were walking away from real money." They built the stucco home four years ago for $380,000 and poured more than $80,000 into it, putting in hardwood floors, granite countertops, ceiling fans, blinds, drapes and a built-in surround-sound stereo system. They also expanded the deck by the pool, turning it into what Cicero called an "executive entertainment area." "You think you have this wonderful home and people will want to buy it," he said, "but you're wrong." Dan Ariely, a behavioral Economics professor at Duke University's Fuqua School of Business and author of "Predictably Irrational," said the "better-than-average" effect is at play. And knowing your next-door neighbors sold their house for $500,000 makes it even more imperative for a homeowner to top that price. "We feel that we're better than other people. We're unique. We're special," he said. "It stands to reason that our houses are also special." The attachment to a house only intensifies the more a homeowner personalizes it, creating an extension of themselves. "The moment we invest in something, we fall in love with it," Ariely said, which applies to something as sentimental as children or as trivial as origami. That puts real estate agents in a precarious position of pricing a house to sell, but not insulting the homeowner by recommending a lower asking price. To a homeowner, a low, but realistic, listing price is "like someone calling your kids ugly," Ariely said with a laugh. Nancy Batchelor, a real estate agent at Esslinger Woooten & Maxwell Realtors in Miami, says she usually agrees to list the owner's asking price as long as they can reevaluate the price in 30 days if the house doesn't sell. "I would like to believe their house is different, but I also don't want to do them a disservice," Batchelor said. Joni Herndon, an appraiser in Tampa, Fla., said real estate agents are calling her in to help homeowners grasp the reality of their home's value. Herndon frequently fields questions from disappointed homeowners after an appraisal, and has to explain how broadly the market is declining and why what a neighbor got two months before for his house doesn't apply anymore. "But sometimes you just can't get through to people," she said. She said homeowners who bought newly built homes at the height of the boom are the most stubborn because they're trying to get back every penny they spent on customized changes. One homeowner Herndon did an appraisal for refused to lower her listing price for the third time, insisting that such features like a raised roof and more space between two windows in an upstairs bonus room set her house apart from others just like it. "It's the mine is better than yours mentality," Herndon said. The homeowner originally asked the builder to move the windows another foot apart and raise the roof by 12 inches so the wall could fit her big-screen television. She also spent $15,000 in extra landscaping and exterior lighting, and $2,900 on designer fans, Herndon said. "You could have put $1,000 worth of fans in the house and blown just as much air," Herndon said. "Owners are very concerned about how much they paid for particular changes, but buyers out there don't value them." Herndon appraised the house, also in Valrico, Fla., at $430,000. The seller put it on the market in April at $500,000, and cut the asking price to $469,5000 in July. The home is still on the market, and the seller declined to be interviewed. The market would bottom out sooner if sellers weren't so stubborn and didn't keep prices artificially high, Arielly said. Homeowners can't stand taking a loss on their properties, yet keeping their home on the market at an inflated price could wind up costing them more. Homeowners need to look at the larger financial picture, Ariely said, and determine how much there is to gain or lose by keeping a home on the sales block longer. Real estate agents press this point on their clients, saying no one wants to buy the most expensive house on the block. After the first reduction in listing price, a psychological barrier, subsequent cuts come easier, most agents say. "Like any type of loss, there's a grieving process," Batchelor said. "First, they're in denial, then angry, then depressed and hopeless. But then they eventually move on if they want to sell it." URL: http://www.msnbc.msn.com/id/27648884/page/2/
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