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Open House

On the Clock; Safe Schools; At Home With Betsey Johnson

Aired September 16, 2006 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

GERRI WILLIS, HOST: Find out what you need do to sell your house right now.
You'll learn how to make the most of your garage.

And see how fashion maven Betsey Johnson would design your home.

Good morning, everyone. I'm Gerri Willis, and this is OPEN HOUSE.

Selling your home wasn't always this tough. Houses that used to sell in weeks are now on the market for months, and in some cases even longer. And with Thanksgiving and the inevitable seasonal slowing that follows, if you have to sell, you'll definitely want to plan to deal with the softening market.

Brad Inman is the head of inman.com.

Brad, OK, what are you telling people if they tell you "Hey, I've got to sell, I've got to sell now"?

BRAD INMAN, INMAN.COM: Gerri, the first piece of advice is the first offer is the best offer. This is not a market where patience is a virtue.

If you've got someone in your door that wants to make an offer, you better accept it. We have an 11-year high of inventory of housing around the country. And so there's a lot more sellers than there are buyers. So sellers really have to be a lot more willing to price it right and sell it quickly.

WILLIS: Now, I know you've said that sellers have to "get their heads out of the clouds." Do you think people are thinking they're going to be able to sell at some of these inflated prices we saw in some markets?

INMAN: Well, you know, we really have a mismatch now between seller expectations and the reality of the market. We have fewer buyers, higher interest rates. And sellers', you know, heads often are in the clouds because their neighbors sold for X last year and they want X. But it's X minus 10, 15 percent, or even 20 percent in some markets. So the key is price it right and take that offer when it comes in the door.

WILLIS: Yes. And I guess it all depends on where you are, because some markets haven't fallen at all. In fact, they are up. So the devil is in the details. But you say in some cases sellers are jumping the gun on incentives.

How so?

INMAN: Well, there is this -- you know, you know there's a slowing market when you hear about homeowners giving away an SUV if you buy their house...

WILLIS: Wow.

INMAN: ... or realtors offering a free vacation to Hawaii. It sounds pretty good, but it's a gimmick. And gimmicks don't work in this market. Buyers are smart.

It's better to lower the price and let the buyer decide if they want an SUV or a station wagon.

WILLIS: So no gimmicks, but you say you do have to do a lot of aggressive marketing.

INMAN: Yes. And really keep in mind that 70, 80 percent of all buyers start their search on the Internet. So when you work with your realtor, tell them to spend more on the Internet and less in print.

WILLIS: Right.

INMAN: Print worked in the past, and it may -- it may look impressive to you to see an ad in the paper on the weekend, but home buyers start on the Internet. Tell him to aggressively market your house on the Internet.

WILLIS: What if I have some wiggle room? What if I don't absolutely have to sell right now and could maybe -- maybe I could wait a school year, maybe I could wait six months? How do I make that decision?

INMAN: I think waiting for a turning market, Gerri, is not the thing to do if you look historically. About every decade we have a downturn. They tend to last three or four, even five years. So the shift of real estate moves rather slowly. But once it's in position in a particular direction, it stays for a while.

So the idea this is all going to turn around at the turn of the year, you know, I think is a little foolhardy. I can't predict the market, no one can. But that historically is what has occurred. So...

WILLIS: Three or four years? I've got to stop you here. Three or four years? That's an eternity for some people with houses.

INMAN: Yes. And the question is how deep the downturn is going to be.

There's a little hysteria about the market slowing now just as there was too much hysteria about it going up. And so I'm not sure it's as severe as people say. But we've got a heck of a lot of housing on the market and just many -- you know, just fewer buyers. And you mentioned the point about it's spotty.

For a while there I thought it was spotty. It was only, you know, in the hot markets that were turning. But we're hearing Chicago is down 25 percent in sales, across country sales are down. NAR is reporting sales down across the country.

There's a few hot markets. Wall Street's still hot. The Silicon Valley is still hot. So the markets around there are still doing fairly well. But generally we're seeing a slowdown, almost everywhere in the country.

WILLIS: Wow. That is very dramatic news. Is there any silver lining here at all, Brad?

INMAN: Yes. For a change the buyer is in control. And for 10 years the buyer was behind the eight ball. So it's great to see homebuyers finally in a position where they can negotiate a good deal. Sellers were in the commander's seat for too long, and it's time that buyers had an opportunity.

WILLIS: Well, and if you are one of those sellers out there, you say short escrows, don't give people any time at all to rethink their decision.

INMAN: Yes. Move quickly. That's the key here. Price it right, though.

Get three realtors in your living room, get a CMA, a comparable marketing analysis. I would argue pick the lowest price, put it on the market, don't -- don't think you can sell it as is. Those days are over.

Be willing to negotiate. Get it into escrow and try to close.

WILLIS: All right, Brad Inman. Thanks for your time today. We appreciate it.

INMAN: Thank you, Gerri.

WILLIS: From selling quickly to rebuilding quickly. The folks along the Gulf Coast have rebuilt so much in the year since Hurricane Katrina. Along with homes and businesses came the need for new schools, schools which could withstand any future storms and protect the children.

(BEGIN VIDEOTAPE)

WILLIS (voice over): School is back in session but it's not just any school year in Louisiana. And it's not just any school building kids are going back to.

Since 2000, Fiberbond Corporation has been selling concrete classroom buildings to school districts that were growing too fast to keep up with the number of students. It points to this school it built in Compton, California, and this one in Shreveport, Louisiana.

But when Katrina hit, Fiberbond realized its concrete classrooms could be just the solution for rebuilding Gulf Coast schools. That's right, concrete.

In Plaquemines Parish, southeast of New Orleans, school administrators wondered how they could rebuild in time for the first day of school in August.

STANLEY GAUDET, PRINCIPAL, S. PLAQUEMINES HIGH SCHOOL: Everything was destroyed. It's pretty much nothing left. If you go into one of my classrooms with 30 kids and say, "How many of you are living in FEMA trailers?" And just about every one will raise their hands.

WILLIS: The school system considered trailers for its new classrooms, but it settled on Fiberbond's concrete buildings.

UNIDENTIFIED MALE: The way the structure works, the wall system, you have two inches of concrete on the exterior, which is -- and we actually make the concrete look like brick -- two inches of insulating foam, and then four inches of concrete on the interior. So they are extremely durable. They are designed to withstand a Category 5 hurricane.

WILLIS: Fiberbond says these buildings can be delivered for about the same cost as a trailer classroom and just as quickly. The company says the buildings will last for at least 50 years, and if they flood in another hurricane, they are mold resistant. Once they are dried out and disinfected they will be ready for students.

GAUDET: We're very pleased with what we have now because it's something the students can come back to and they can look over there and see what they had and know we have just as good a facility.

WILLIS: Todd Walker says his product is the future of school buildings.

TODD WALKER, PRESIDENT, FIREBOND: Until now the solution is, hey, we've got to bring in portables. Well, they are not a good living environment. They are not energy efficient. They have a tremendous number of problems with maintenance. And we offer a better solution to that.

WILLIS: And for students still living in FEMA trailers it's a welcomed permanent solution.

(END VIDEOTAPE)

WILLIS: Now, you might have noticed the classrooms we showed you were set on temporary foundations. That's because FEMA will only pay for temporary structures. But school officials are hoping to some day put those classrooms on permanent foundations.

Coming up on OPEN HOUSE, how to protect your child from identity theft. Plus, it's time to save space. "Weekend Project" shows you how to make your garage a true extension of your home.

And just how would a world-renowned fashion designer, Betsey Johnson, design the inside of your home? I'll ask her. That's next.

But first your "Tip of the Day."

(BEGIN VIDEOTAPE)

WILLIS (voice over): The kids are back in class, but does their school get a passing grade for its emergency contingency plan? Should there be a bomb threat, a terrorist attack, or natural disaster, you need to know what happens next. Will children be able to use their cell phones? Who will be in charge?

All of this information should be available to you. It's important that your school district has a plan tailored to its specific locale, layout and population. A plan in the can simply won't cut it.

If a crisis contingency plan is not already in place, get a group of parents and teachers together to demand that one be drawn up stat. Two great resources, the U.S. Department of Education at ed.gov, or the National school Safety and Security Services online at schoolsecurity.org.

And that's your "Tip of the Day."

(END VIDEOTAPE)

WILLIS: Hey, it's Fashion Week in New York City. All the hottest designers strutting their new lines down the catwalk. But what if -- what if you could live in a home decorated by one of those top designers? And what if that top designer was Betsey Johnson?

Check this out.

(BEGIN VIDEOTAPE)

WILLIS (voice over): The fashion business: fast-paced, flashy, and fickle. Designers come and go each season, pushing the limits of style and taste to new levels.

But one designer has been a mainstay for almost 40 years. Betsey Johnson, with her platinum blonde hair and signature cartwheels, she has rocked the fashion world since she hung with the likes of Andy Warhol and the Velvet Underground.

BETSEY JOHNSON, FASHION DESIGNER: Oh, I tell you, in the '60s, I mean, I was kind of on the edge of the trends. That would happen, and I was always like this outcast. And little fighter.

I'm established because I'm still around. And it does take staying power for anybody to be really respected, you know, if -- especially when you're the odd man out in terms of fashion. But now with 45 stores and 12 licensing situations and -- I have a look, and I guess it just kind of works.

WILLIS: And she's bringing that look into the homes of millions of her fans.

JOHNSON: The home really lets me show off my different personalities. This house represents Betsey Boudoir, which is kind of very lingerie, Hollywoodesque, satin and velvet and silks.

Then there's a Betsey Betseyville, which is very Mexican. Then there's a Betsey Boyfriend, which is very kind of more simple and elegant. And then there is a Betsey Bahamas, which is very islandy, bright and fun.

And then there's a Betsey Belle (ph), which is very floral and soft. And a Betsey Back Yard which is very Doris Day and picket fence.

WILLIS: With her home line do out in the spring, she is always looking for inspiration in her own colorful spaces.

JOHNSON: I guess what's very important to me is to be able to live out my home schizophrenia, because I'm -- I'm kind of modern Hollywood and New York, I'm tea party, English countryside floral in the Hamptons, I'm bright Mexican crazo (ph) in (INAUDIBLE).

And down south of Z I'm very Italian villa, chandeliered-out (ph) elegant. And I had no idea I ever wanted more than one place to live. And I just -- I just have to keep decorating.

WILLIS (on camera): Show me some of the items in here that have been with you for a long time that would be telling about your personality and your design and your style.

JOHNSON: Whoa. Well, you know, I have about eight of these girls. I had no idea I was collecting them.

I don't know where she's from, why she pops into my life. But I tend to like the same old thing over and over and over.

That's my daughter.

I love frames. I think, basically, that's a mainstay for me, frames and pictures, because living by myself I want company when I come home. And my photographs and my family pictures and my treasures from all time zones.

WILLIS (voice over): Even her kitchen is unconventional Betsey.

(on camera): Now, where did you good this?

JOHNSON: My friends. And this I have lugged around for -- from upstate New York, when I had a little farmhouse. This came out in the barn. I don't cook, so I finally did break down in...

WILLIS: So this is pretty much for show.

JOHNSON: It's pretty much for show.

WILLIS (voice over): No matter what she is collecting her design sense always remains.

(on camera): What rules of the road have you found in all of that, that people could use in designing their own homes?

JOHNSON: I think make it a personal experience. Get out and antique, go to stores, experiment with it.

(END VIDEOTAPE)

WILLIS: Did you see that pink shag carpeting? My husband would kill me if I bought that.

Coming up, back up the car and get ready to get dirty. It is time to make the most of your garage.

"Weekend Project" when we come back.

But first, your "Local Lowdown."

(BEGIN VIDEOTAPE)

WILLIS (voice over): New York City, Gotham, The Big Apple, the city that never sleeps. Home to more than eight million people within an area of 321 square miles, it is the most densely populated city in North America.

Manhattan's housing market is one of the most expensive in the world, second now only to London. Median home sale price -- $880,000.

The city subway system consists of 656 miles of track, complemented by commuter rails, buses, taxis and ferries.

City natives and visitors alike can enjoy some time at the Met, a Broadway show, or at the Bronx Zoo. If you are one of the 40 million tourists in from out of town, make sure to stop by Times Square, the Empire State Building and the Statue of Liberty.

Up for some excitement? Head on up to the iconic Yankee Stadium. It will only be there for two more seasons.

Or, if you're in the mood for something a little more low key, grab a picnic and hit the 843-acre Central Park.

And that's your "Local Lowdown."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WILLIS: OK. So it used to be your garage was the dumping ground for all of that stuff you didn't want in your house. You know, trash cans, old golf clubs, junk you said you would throw away but never did. Well, the garage should not be wasted space. Instead, think of it as the biggest walk-in closet in your house.

(BEGIN VIDEOTAPE)

BARRY IZSAK, "ORGANIZE YOUR GARAGE IN NO TIME": The first thing that I recommend is to clear the space. So you basically just start bringing the things out into your driveway and then you begin to sort.

WILLIS: Group the items that belong together and toss what you don't need.

IZSAK: So let's just group the shovels.

WILLIS (on camera): Hey, we've really narrowed this down.

IZSAK: And when you do this, it saves you a lot of work.

WILLIS (voice over): Think zones. Whether you're a sports nut or just buy too many groceries, make sure all of your stuff will fit into a zone, and put it away neatly.

IZSAK: One of the cardinal rules is we want to put the heavier things on the bottom.

WILLIS (on camera): Very nice. Right at hand level. Easy to get to. Simple.

And boy, I'm telling you, the mess is gone. That's great, Barry.

(voice over): Hardware can be tough to organize. Your best bet, forget the toolbox and keep things out in plain sight. Just make sure all your items are separated and stored in visible containers.

IZSAK: The first thing we do is, after we sort it, of course, we want to organize them by types. We've got the screwdrivers, we've got the wrenches right here...

WILLIS (on camera): Nice.

IZSAK: ... and we have a suitable holder here that holds them. Every...

WILLIS: And look at this. This is really amazing.

IZSAK: Yes. I love these for nuts and bolts, these little tokens. They are great product.

WILLIS: So much easier, you know?

IZSAK: Absolutely.

WILLIS: Instead of, you know, having them all over the inside of one of these.

(voice over): Another trick, whether it's excess food or your kids' toys, you want to keep all items off the ground. This will prevent water damage and bugs getting into your goods.

Bulky sports equipment can be tough to contain. Try racks and bins to keep it neat.

IZSAK: Well, the cool thing about these racks are they are multipurpose racks. And more than one solution is provided. We can put balls in the bags, we can put balls in the bin. We can put balls in a basket.

WILLIS: For stuff you only use once a year, like holiday decorations, try an accessible attic or other storage unit. You don't need to keep seasonal items out at all times.

Once you've gotten rid of what you don't use and organized your garage into zones, well, there's only one thing left to do: make sure your kids don't mess it up.

IZSAK: That's one of the important things, Gerri, is that people wonder, "Will my kids keep the system up?" Well, how can they not when all they have to do is throw a ball in a bag or stick a bat in a holder? It makes it user friendly.

WILLIS (on camera): So, Barry, the garage looks great. How do I get this done in a weekend?

IZSAK: Well, one important thing to remember, Gerri, is that you might not get it all done in a weekend. You need to be realistic with your expectations. Break the task into small manageable pieces so you don't defeat yourself before you start.

WILLIS (voice over): And once your garage is Spic and Span, you may finally be able to make room for one more important item: your car.

(END VIDEOTAPE)

WILLIS: OK. That might take just a little bit longer than one weekend. As always, though, if you have an idea for a weekend project, send us an e-mail to openhouse@cnn.com. And you can watch past weekend projects on our Web site, cnn.com/openhouse.

Don't go anywhere. We have important tips for you on keeping your child's identity safe from criminals. That's next on OPEN HOUSE.

But first, your mortgage numbers.

(COMMERCIAL BREAK)

WILLIS: Identity theft isn't just for adults. Children are having their identities stolen more and more. Now, that's according to the Federal Trade Commission.

A child's I.D. theft can take years to recover, causing huge damage over time and ruining your child's credit even before they hit college. Look, just because your 6-year-old doesn't have a credit history doesn't make them safe from identity theft. Anyone with a Social Security number is at risk.

So, get a copy of your child's credit report at annualcreditreport.com. Try to keep them off the Internet, too, or at least monitor their activity.

While I.D. thieves get a lot of their information from dumpster diving, they can also troll the Web. You'll want to make sure your child's profile on social networking sites like MySpace or FaceBook don't have any personal information that can lead an I.D. thief to your child.

One red flag might be a 6-year-old who's getting Harley-Davidson catalogues in the mail. That means it's time to do a credit check.

Now, if you have any questions or tips you want to share with your fellow OPEN HOUSE viewers, send us an e-mail to openhouse@cnn.com. And you'll find more on today's guests and topics on our Web site, cnn.com/openhouse.

As always, we thank you for spending part of your Saturday with us.

OPEN HOUSE will be back next week right here on CNN. And you can also catch us on "HEADLINE NEWS" every Saturday and Sunday at 5:30 p.m. Eastern Time.

Don't go anywhere. Your top stories are next on "CNN SATURDAY."

Have a great weekend.

(COMMERCIAL BREAK)

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