The summer is a big time for people moving. Many opt to rent a truck instead of hiring professionals to do the job. There's one company that Clark suggests you avoid if you intend to rent a truck. U-Haul has long had problems with putting allegedly unsafe vehicles on the road. Clark recently saw a Bloomberg report about a man who won an $84 million judgment when his U-Haul ran him over! The jury assessed $21 million in damages and $63 million in punitive damages. U-Haul, of course, feels the damages are excessive and plans to appeal.

Clark thinks this was a case of a jury being furious about company that seems doesn't seem to learn from past mistakes. Go to Google and type in "U-Haul problems" to see for yourself. U-Haul vehicles tend to be old and not properly maintained. The reality is that the company needs to look in the mirror and make some changes, not point fingers at a jury verdict as unfair. Clark invites any U-Haul representative to come on the air and tell him why his view is flawed.

There's a new recipient of the old "car on blocks" award. You know the saying, "Stay away from neighborhoods that have cars on blocks," right? Portable on-demand storage (PODs) units are getting that kind of stigma now. Instead of you going to storage, you bring the storage to your front yard with a pod. Leaving one on your property for too long is a sure way to drive your neighbors crazy. The Washington Post reports that there's now a big backlash over the prevalence of PODs. You'll see them invading neighborhoods of all price points, in addition to construction sites. And these things aren't cheap, either; they can cost nearly $400/month to rent! So townships are getting ordinances passed to restrict or to require permits to have PODs on your property. The original concept with PODs was that you loaded them up and moved to another place or had them stored elsewhere. It's a more recent phenomenon that they've become at-home storage units! Clark's wife would kill him if he got a POD at their house.

In the latest session of Clarkonomics, our favorite penny-pinching guru offered tips for homeowners looking to maximize their resale value in an increasingly tough market. The latest data shows that housing sales are definitely down, but not as much as you'd think. Some 5 million people (at an annual rate) closed on homes last month across the nation. But from the headlines, you'd think that number should be zero. Prices are definitely around 5 percent down, but all real estate is local. Areas such as Tampa, Miami, San Diego and Detroit are down over 10 percent, while Las Vegas, Phoenix and Los Angeles may be down between 15 and 20 percent. Yet if you're in Atlanta, Charlotte, Dallas, Portland or Seattle, you'll find that home values are fairly stable. Also, keep in mind that widespread housing recovery probably won't come until 2009.

So what should you do if you're trying to sell your home? First off, consider owner financing if you own your home free and clear. You'll take on the role of being the bank, and you may get a better price and a quicker sell, plus a higher rate of interest back from the buyer. But beware that you have to get between 15 and 20 percent down to protect yourself. Second, be realistic about your listing price or you'll scare people away. Finally, try doing a FSBO (for sale by owner). Just know that sellers will come looking for a real steal, so be aggressive in sticking to your pricing. It might be better to hire an agent.

The troubles in the mortgage market are having an unexpected side-effect on renters. It all starts when people who own homes and condos that they can't sell become involuntary landlords. Those folks rent out their places while waiting for the market to recover so they can sell down the road for a profit. But what happens when an investor who buys multiple properties on spec gets into this situation? Even if those investors have tenants in their properties, they usually can't recoup all their costs when multiple mortgages come due every month. So they sometimes stop paying the mortgage on one of their properties while continuing to make payments on their others. You're going to find an eviction notice on your door if you're unlucky enough to rent at a property that's facing foreclosure. Tenants in this situation have fewer rights than if they didn't pay their rent for months.

Clark was in this situation at age 22 when he rented a condo with an option to purchase from a divorcing couple. One day he came home after playing tennis and found a notice on his door ordering him to vacate in just seven days. His landlords were taking his rent every month and not paying their mortgage. So Clark called the mortgage company's lawyer and asked for more time than seven days to vacate. He was denied extra time, but wound up working out a deal to purchase the townhouse for $36,000 with a five percent down-payment. He also got great loan terms because the bank didn't want to deal with a foreclosure. His mortgage payment actually wound up being lower than what he'd paid in rent! So out of adversity there can be opportunity. Clark still owns this property, which has been long since paid off. He's been renting it out for 25 years and it's been a cash cow for him.

In the latest session of Clarkonomics, Clark discussed how the housing market may not always be as bad as it seems. Much of the country is in a difficult situation, but it's not a dire one. The states that are in absolutely dire shape (because their bubble markets popped) include California, Nevada, Arizona, Florida, parts of Washington D.C., Michigan, Ohio and Indiana. The rest of the 40 odd states are experiencing sluggish sales with home values sliding slightly and an oversupply of houses. Most people who bought in 2005, 2006 or earlier this year financed 100 percent and are in weirdo exotic loans. That's the true picture of what's going on -- though it makes better headlines to say the sky is falling.

Some people are frightened by a new statistic that says the rate of houses closing once they go to contract has slipped from the traditional 97 percent to a hair under 90 percent. On the one hand, it's a huge change because the number of deals not closing has tripled. But on the other hand, nine out of 10 houses under contract still will go through. One thing Clark has noticed is that there's a window of opportunity right now if you're interested in a new home. New home sellers are sitting on a wounded duck. They're carrying large construction loans and bleeding money every month when deals fall through. They just want to get out with their shirts on. Clark's latest book, Clark Smart Real Estate, talks about why used homes are a better buy than new ones. But right now there's a strong possibility that you might find the opposite is true. Just one caveat about buying new in the bubble market states: It's not clear when the bottom will come and we're probably not there yet. So make sure you plan to own for a minimum of seven years in those markets to make it worth it. Otherwise, don't buy yet -- wait until the deals get better late next year.

We've all be hearing about how tough it is to sell a home right now. Clark's read a number of articles that give some advice to sellers that he's been championing for years. Before you go to market, you should hire an inspector to carefully vet your home. Then fix whatever it is that needs repair, and have the inspector's report and your receipts available for prospective buyers to examine. As a seller, you have to psychologically try to get inside the head of a buyer. Even though a buyer may consider a used home, they still want it to be perfect like a doll house. Imagine that a corner of your roof needs repair and you don't spend the money to fix it. When their inspector finds it, the buyer is more likely to blow the potential repair cost out of proportion and make a lower offer on your house accordingly.

What should you do if you're upside down in your home -- that is, you owe more on it than it's worth? Some lenders will permit you to do a short sale, where you sell your property for a lower value before it financially takes you (and the lender) under. This idea came from the government's FHA program, which would allow people to sell for less than they owed on a property and walk away clean without going into foreclosure. Now private industry is learning from the government's short sale idea. Remember that the average foreclosure costs a lender $70,000, so they don't really want to foreclose. A short sale could be a win/win option for everyone.

With the financial and housing markets in turmoil, people always wonder about the likelihood of a recession. While a lot of reputable sources are saying that it won't come to that, Clark has noticed that the interest you earn on a CD or treasury is actually higher for shorter-term investments. Historically, recession has followed when short-term investments like a 90-day treasury pay better returns than a 30-year treasury. In addition, the stock market may be ready for what's termed "correction" -- when it drops by 10 percent. On the real estate front, we've been binging on the housing punch bowl for years and it's starting to dry up. Normally, a home's value goes up by the rate of inflation plus a smidge more for the fact that there's a limited amount of land. So in the past a house would appreciate about three percent per year. But more recently it hasn't been uncommon for a home to appreciate three percent per month.

For example, Clark's oldest brother lives in a Phoenix suburb. He and his wife bought new construction and during the nine months it took to build their home, the value went up $100,000. Then the next year the value went up $150,000. But when Clark recently visited his brother, there were a ton of houses for sale in his neighborhood with no willing buyers. If the housing market gets ahead of itself and people can't afford anything, it has to correct. Think of the market as a ladder, where people enter on the first rung with a starter home, condo or townhouse. But when you can't even reach the first rung, the builders have a tough time selling. So the builders themselves have gotten into the mortgage business and lowered the lending standards so that people can qualify for homes that may be out of their price range. The problem is that homeowners now can't sell for close to what they owe on a loan and they can't refinance. As many as five million people across the country are in a similar situation and could face foreclosure. So where's the silver lining? Well, the long-term benefit is that when we're done with this "correction" period, homes will become affordable again for the typical family. The question is how long will this process take? Meanwhile, Clark doesn't profess to be an economist, but he does think the odds of a recession are better than 50/50.

It's no secret that right now it's a tough time in the housing market for sellers and a confusing one for buyers. If you're selling and you have a lot of foreclosures in your neighborhood, you've probably noticed the value of your home declining. And if you're buying, you're facing a variety of exotic weirdo loans with adjustable interest rates, option payments and more. But relief may be around the corner in a market phase called capitulation. Look at markets like Denver, Salt Lake City, Houston and Southern California. These are all places that suffered through a bad real estate depression, but recovered and thrived. How did they make a comeback? Well, the ultimate measure of whether or not a real estate market will thrive is job growth.

It's also important to remember that the mortgage market is not a monolith and some segments are already in good shape. For those with decent credit seeking a conventional 15, 20 or 30 year loan, the rates are now lower than they were just a few weeks ago. What it comes down to is that a lot of speculative markets had bubble growth and it will take time for them to unwind. So if you're considering buying a home before the year is out, you may want to just wait a little bit longer until 2008. Likewise if you're in a cold climate, once winter comes there will be more opportunity, according to Clark. Think of the push toward capitulation like a baseball game; right now we're in the third inning of a nine-inning game, Clark says.

Many Americans are behind on home mortgages and millions are now facing foreclosure in the next year or so. That situation creates the opportunity for a scam called "equity stripping." Have you ever seen those signs on the side of the road that say something along these lines: "In trouble with your home? Avoid foreclosure! Call now!!!" With equity stripping, you essentially sell your house to a company or individual who then pays the mortgage. They'll often let you stay in your house until you can get back in financial shape. You also sign a contract stating that you'll later be allowed to buy back your home for a nominal fee -- sometimes as low as $5,000. Here's where the real scam begins. The person or company who was "rescuing" you from foreclosure turns around and borrows up to the full amount of hard-earned equity that you put into your home. Then they disappear with the cash in their pocket and an eviction notice goes up on your door.

So if you are behind on your mortgage payments, you can't rely on anyone other than yourself. Keeping an open line of communication with your lender and wisely juggling your financial commitments are the keys to avoiding foreclosure. Go back to your lender and work out a payment plan that allows you to keep your home. If you've already approached your lender once and been turned down, get in touch with them again. Stay in constant contact. Finally, you have to re-prioritize your bills. Your mortgage should be at the top of your list for paying every month -- even if that means putting other commitments like your credit card on hold until later.

Are you buying a new house and worrying about what to do with your old home? Clark knows what it's like to have two houses and two mortgages -- it's a burden he once carried for 14 months. But what if there was a way to avoid the double payout headache? Clark recently read a story in Money magazine about a Southern California homebuilder who has started a trade-in program. You can trade your old home in and buy your new house in the same day. There are no real estate commissions on the sale of your home, which is important because they don't pay you market value. Rather, they offer a little more than 90 percent the value of your home. But you get the certainty that you're out from under having to make payments on two houses.

There's no way to gauge if this practice will pop up elsewhere in the country. What we do know is that a lot of homebuilders are desperate right now to unload their product. On a related note, the National Association of Homebuilders reports that there are offers available from a small number of builders that have a long-term guarantee. That means that if you're stuck with your house on the market for too long, the builder of your new home will buy your old one at somewhere below fair market value. The trade-in plan is obviously more to the advantage of the consumer. The downside for the building company either way is that they have to be financially strong enough to carry your home until they can sell it off.

Home builders across the country have taken a big hit, according to some brand new statistics. D.R. Horton -- one of the nation's largest home builders -- has reported order cancellations approaching 40 percent and price cuts that are significant on buying new homes. It is completely a buyer's market in the new home market. By comparison, the used-home market is much healthier. Yet sellers have a very pessimistic mindset, thinking they won't be able to sell their home anytime soon. That belief is not entirely unfounded; a house will now sit on the market for an average of nine months before it's sold. So if you want to sell soon, you'll probably have to take less money for your property than you thought. That's the reality of the market. Recovery is on the way, but it's not forecasted to arrive until 2009 or 2010. At that point, we should see what's called equilibrium, where you have roughly equal numbers of willing buyers and anxious sellers. Right now we have more anxious sellers than willing buyers. It's going to take time to unwind the speculative fever that drove prices up unnaturally in a lot of bubble markets, such as California, Arizona, Nevada, Florida and Boston. So if you are a buyer, it's a pretty good time for you even though interest rates have gone up.

The moving truck company U-Haul has put people's lives at risk because of terrible safety issues. There is a huge lack of proper maintenance and safety checks that go on in the company. So, if you need a trailer or truck to move stuff, look at their competition. The LA Times wrote a story on the issues that U-Haul has had and found all these problems. Many people have been hurt badly because of these terribly maintained fleets of trucks.

In the homebuying market, the balance of power has shifted to buyers. Sellers have become more desperate. So, what tactic can you use to help you sell your home? Well, agents are being offered huge bonuses to sell certain homes these days. So, they’re doing what’s called “steering” to show buyers homes that may not fit their needs. In return, the agents are getting such goodies as $15,000 bonuses and free vacations. Now, there is nothing wrong with this as long as it’s disclosed. But often it is not. If you are a seller, you can use this tactic to your advantage. Offer agents a carrot to show your home of condo more frequently. As buyers, you should know this is going on and ask if you suspect that it's happening. But sellers need any kind of edge these days, and getting agents on your side is not a bad move.

In the homebuying market, the balance of power has shifted to buyers. Sellers have become more desperate. So, what tactic can you use to help you sell your home? Well, agents are being offered huge bonuses to sell certain homes these days. So, they’re doing what’s called “steering” to show buyers homes that may not fit their needs. In return, the agents are getting such goodies as $15,000 bonuses and free vacations. Now, there is nothing wrong with this as long as it’s disclosed. But often it is not. If you are a seller, you can use this tactic to your advantage. Offer agents a carrot to show your home of condo more frequently. As buyers, you should know this is going on and ask if you suspect that it's happening. But sellers need any kind of edge these days, and getting agents on your side is not a bad move.

A brand new report out from the Census Bureau shows that Americans are spending an exorbitant amount of their money on housing. In some states, people are spending more than 30 percent of their income on housing. It’s a direct result of the housing bubble that many parts of the country have been in for a few years now. So, what do people do? Do they sell their homes at a much lower price or hold out and see if things get better? It’s a tough spot. Clark wants to make an educated guess about what people should do. Just remember that it’s just his prediction – it’s not fact. So, if you want to get out, you cut your price and take the loss or turn your home into a rental. If neither of those are options, you must be prepared to hang in for another five years minimum. That’s when the value of homes in mountains, lakes and beaches will return.

The Wall Street Journal published a recent report about the areas of the country with the greatest risk in terms of the housing market. There are three main areas. One stretches from San Francisco south to southern California and west to Arizona; the second encompasses nearly all of Florida; and the third includes the mid-Atlantic states from New York down through Virginia. Why is it happening? Part of the reason is that speculators have pushed prices up by buying up homes they never intended to live in. They bought them thinking they could flip them someday and make money. Well, now these people are under water and they can’t get rid of them. So, what can you do if you have to move and need to sell your home? Well, first of all if you plan to sell, you’re not doing yourself any favors if you are listing your place for the same amount as others are. Becoming a landlord may be an option for you. If you don’t want to take the loss, put the place up for sale and wait it out. Be realistic about what the marketplace will afford you. You’re holding a bad hand right now, but you can work through it.

We are moving into a very unusual time in the housing market. The number of unsold homes on the market has increased 500 percent in the past year. In fact, the amount of available homes is the highest it’s been in seven years. That’s why it’s super important that you not buy a new home until you’ve sold the one you’re in right now. It’s especially dicey for condo owners right now. So many condo complexes have been built that existing owners are having terrible problems selling them. On the other hand, if you are thinking of buying, you can get some great deals. There are going to be some steals in the condo market, but you need to wait just a little longer.

Real estate agents, in fear of losing money, have been engaging in anti-competitive practices in states such as Texas, Oklahoma and Kentucky. In those states, agents are trying to make it a crime for people to use “a la carte” real estate services or to use discounted commission services. Agents have felt threatened by the continual drop in commission, which has dropped from about 7 percent to 5 percent. But with advancing technology, people don’t have to accept traditional ways of doing business. Many are using the Internet help to buy homes on their own or to hire agents for limited help. It’s causing a civil war inside the real estate industry. Some agents are going with the flow and are offering limited service for a lower commission, while others want fixed commissions and anything else is illegal. Why not let the customer decide? Some people still want the full service agents, but others do not. Making it against the law is simply corrupt, though. The Texas Real Estate Commission is the latest group trying to do this, and Clark thinks it’s ridiculous. States should not be allowed to interfere in the free market and should be penalized if they do.

We’re moving into spring, which is the heart of selling season in the real estate business. And according to the L.A. Times, open houses are back. Open houses, which were considered passé in recent years, are now increasing steadily. With the increase in housing prices in coastal areas, agents are using any means necessary to attract potential buyers. If you are selling your home, encourage your agent to schedule some open houses. You only need one qualified buyer to take that home off your hands. It just makes sense. And don’t feel insulted if someone makes an ugly comment about your home or makes an offer that seems ridiculously low. Think of yourself as a merchant and don’t get too prideful. Counter with a price you think is reasonable and remember that it’s just a negotiation.

We talk about competition from Communist China, Europe and other parts of Asia. But did you know that states compete as well for residents and for top positions in the marketplace. The topic they use most often to influence people is weather, according to news reports. College-educated people are moving from cold-weather states to warmer states en masse these days because the quality of life is perceived as so much better. Not to mention the fact that there are more jobs in these more attractive places. The state of North Dakota loses the most young people each year. Last year the state lost 28 percent of that demographic. The second least popular location is South Dakota and Iowa was next in line. West Virginia and Montana were No. 4 and No. 5, respectively. So, where are those people moving? More than anywhere else, college-educated people are moving to Nevada. The second most popular place to move is Colorado, and the third most popular state is Georgia. No. 4 and 5 are Arizona and Oregon.

There is a large shift going on in the world of real estate that means much more options for you and your home. The market is splitting up into various sectors that span the range of do-it-yourself sales to full-service agent help. Real estate agents are still key to making the real estate market work. But people are finding what works for them. The market share of companies that offer alternatives is growing quite quickly, and the days of non-negotiable transactions are over. In fact, the average commission on real estate transactions is a little more than five percent today, and you can thank the Internet for that. In a lot of cities, about one-third of home sales are taking place on the Web. That is a very scary prospect for agents, who used to be in complete control of real estate listings and information. So, what are real estate agents afraid of? In the Northeast, they are terrified of Foxton’s, a European real estate agency that pays its agents salaries instead of strictly commission. Foxton’s agents get about 3 percent, compared to the typical 6 or 7 percent that regular agents get. There are some agents in the Northeast who will not show a Foxton’s listing because they get a smaller cut of the deal. But there are also agents who are more forward thinking about their services and the real estate industry in general. They’re willing to take a lower commission for fewer services. Some even have prices lists with a la carte services. For example, you handle the open houses but the agent takes care of the listing. There will be more and more of this coming our way because the Internet has democratized information. Traditional real estate agents will try to fight this movement, but it’s going to happen regardless.

The real estate industry is going through some massive changes lately. Information is becoming more available to the public, and consumers are able to look at listings with or without the help of an agent. It’s leading to more blended sales, where FSBOs and a la carte pricing are involved. Traditional real estate agents are very unhappy with this new pricing model, and some are striking back. The New Hampshire Association of Realtors is going after an organization that helps people get discounts called “I Sold My House.” Realtors are claiming that the group is acting as an unlicensed realtor. But in doing so, the realtors are helping spread publicity about this organization. Real estate agents are simply scared of new technologies and changes. In a free market, you should have the choice of doing business with who you want the way you want.

Clark has hoped for a long time that the traditional real estate industry ceases to exist. He doesn't think people should have just two choices when it comes to buying or selling a home: getting a fully-commissioned real estate agent or doing it yoursel. There has been no in between for many, many years despite efforts of forward thinking companies. The good news is that there are people in the real estate industry who want things to change, too. Daniel Ruben, an agent, deducts two-thirds of his commission to customers who choose limited services from him instead of the full deal. He's basically a broker for agents who are willing to take a reduced commission in exchange for providing fewer services. Similar efforts have been made in New York City where Foxton's, a British company, has blossomed. Agents get about two percent commission compared to the regular 6 or 7 percent. Customers basically get to choose what level of service they want, and Clark loves it.

One of the difficult topics Clark deals with is how to sell a home. Is it smarter to do FSBO (For Sale Buy Owner) or to hire a real estate agent to do the work for you? Many people start with a FSBO and then give up after awhile because it is a huge hassle. Christa, Clark’s executive producer, recently sold her home as a FSBO, but she was ready to give up after two weeks into the process. Dealing with questionable or rude people every week and constantly having to keep the house clean nearly caused her to give up. But she kept with it for another month and finally it paid off. She sold her home after six weeks and ended up saving more than $20,000 doing it herself. But, if she had the sell the house again, she will use an agent. Clark recommends that you stay with a FSBO for three months if you’re going to try it. You will figure out what works best for you.

Clark has hoped for a long time that the traditional real estate industry ceases to exist. He doesn't think people should have just two choices when it comes to buying or selling a home: getting a fully-commissioned real estate agent or doing it yoursel. There has been no in between for many, many years despite efforts of forward thinking companies. The good news is that there are people in the real estate industry who want things to change, too. Daniel Ruben, an agent, deducts two-thirds of his commission to customers who choose limited services from him instead of the full deal. He's basically a broker for agents who are willing to take a reduced commission in exchange for providing fewer services. Similar efforts have been made in New York City where Foxton's, a British company, has blossomed. Agents get about two percent commission compared to the regular 6 or 7 percent. Customers basically get to choose what level of service they want, and Clark loves it.

If you’re moving anytime soon, please be careful. There is a lot of criminals in this industry that will steal your stuff. An estimator may show up at your home to give you a written estimate. They may be well spoken, kind, dressed well and they may have come highly recommended. But as soon as the truck drives off, it can never be seen again. The FBI recently broke up a criminal ring through a sting operation known as “Operation Stow Biz.” A total of 16 companies were stealing goods or holding items hostage until the owners paid them off. So, remember to hire only legitimate movers. Go to moving.org to find a company in your state.

When you’re selling your home, should you try to sell it yourself or should you use an agent? What about doing something in between? Most people should hire a full commissioned real estate agent. But if you think you can handle the work on your own, you might want to try out a discount broker service that charges between one and four percent. Some of these are erealty.com and ziprealty.com. Foxtons, which operates in the North East, is charging as little as two percent. These services are getting so popular that traditional real estate brokers have had to lower their commissions to compete. Commission levels are falling to around five percent in some areas, and agents are not happy. In Texas, the real estate industry tried to make it a crime to use a discount broker. It didn’t work, and Clark is happy about that. People should be able to decide what level of service they want. So, how do you decide? If you are thinking of selling a house on your own, you must know that it’s not as easy as sticking a sign in your yard and letting the house sell. You have to figure out how to price the house, how to negotiate, and you must have a thick skin. You need to give it at least 12 week, and when it’s time to get professional services. If you want an agent for certain a la carte services, you will pay depending on what you want.