European Stars And Stripes (Newspaper) - March 20, 1988, Darmstadt, Hesse                                Page 16 the stars and stripes business news sunday March 20,1988 the Dollar should pent modes gains on International currency markets in the coming week in the Wake ofic Lucr tray expected figures from the com Merce department an America s Trade picture. Although the Trade deficit widened slightly in Jan uary to j11.4 billion after two month of Sharp improvement the deterioration was expected by Molt analysis because Noru traditionally fall in Jan uary Market analyst in Frankfurt and London said they look some Comfort in the fact that while exports fell by 10 percent import also were Holtby 6 percent loj14.ll billion. A handful of traders dismissed the figures entirely attributing much of he decline in imports 10 the drop in the Price of Oil. The consensus however is thai he Dollar should Rise to the lop of its current trading Ranee to a level of around 1.72 West German Marks. Bui growing Market concern with inflation in the United states could serve to drive the Dollar Back Down in the coming months perhaps As Low As 1.60 Marks traders said. It s Lough to predict exactly what will happen but if inflation continues to creep up and if the Federal Reserve is not willing to raise interest Rales to tint it or can t because of pressures from the administration in in election year then the Dollar will Likely weaken again one trader said. Still the Buck should close higher Fay the end of the year traders said thanks to gradual improvements in the Trade picture and the . Presidential election. By the end or the year the new president will have said what he s going to do to get the budget deficit Down raise tuts or whatever and thai should have a Poi live effect on the Dollar the treasurer of an american Bank in Germany did. There is the feeling Here hat if George Duih wins and that s How it looks that he will do something about the deficit. That should prove to be Good news for the  although the United states posted a Trade sur plus with Britain in january a modest 175 Mil lion few trailers expected the Greenback to Bounce Back against the pounds which has gained s percent in the lust month. The Market tends to look at the Overall Pic Ture a London trader said. Based on Ameri Ca s Trade figures. I m predicting the Dollar to remain in rather tight ranges of Between 1.67 and 1.70 Marks 127 and 130 yen. And $1.85 and i so to Sterling the Pound re rained the Moat interesting cur Rency on International markets following tuesday s release of the National budget and a half percent Cut in the British discount rate on thursday. A British banker predicted that the budget a study in Supply Side economics that trimmed the tax rates of the wealthiest britons would have i talc effect on the Pound in he Short if it. Basically it was t far removed from what everyone was expecting so there should t be much influence on the Market there she said. There was a belief that the ceiling on the National insurance plan would be removed mean ing the wealthy would pay More but ii was left completely  the Cut in interest rates was being viewed As n political Moye designed to end feuding Between prime minister Margaret Thatcher and her Chancellor of the Eicho Lucr Nigel Lawson who differ on How to provide stability for the Pound. Thatcher a Strong believer in the free now of markets had publicly fought the rate Cut before reversing herself on thursday. I think Lawson s still interested in stability but he d like to weaken the Pound a bit especially against the  a trader said. The Pound slipped late thursday following word of the rate reduction but had regained most of its ground by close of trading Friday. With he deficit figures behind them currency traders now Are awaiting the end of March when the japanese fiscal year ends. America s Trade deficit with the Island nation fell by 17.6 percent in january to j3.9 billion the lowest one month level since december 1986. One major category of imports from Japan new automobiles registered a 19.5 per cent drop in january to ,6 billion the com Merce department reported thursday. Money saving tips offered on stateside House buying by Rosemary Sawyer staff writer a 6 percent real estate agent s fee on an 180.000 House Means $4,800, and Erin Botsford is one real estate specialist Whol Tell you not to pay it while Botsford remains Loyal to real estate professional she admits that in behoves agents to keep the Public uneducated about the real estate Industry. And on that Point Botsford and the property paddlers part ways. The title and escrow agent often advice to House hungry service member and civilians returning to the states. Her seven hour seminar will be held in base recreation centers through the summer. Botsford coached 41 House Hunters last week at Rhein main a thai buying a House Means learning the game rules and whoever learns them Besl  one often misunderstood game Rule say Solen pay the real estate agent s commissions. Ultimately buyers pay the fees As Sellers raise their prices to compensate for them the told seminar participant who paid 129 each or $40 a couple to attend. Likewise Sellers in a military Community who will probably sell to veterans administration Borrower will add to the Price lag Point charges they expect to incur. Lending institutions charge Points a Point in i percent of the Rale Price to Bridge the Gap Between what they will lose on  loan Borrower ver sus Borrower with High int Rusl Loans. Points charged on a Loans tend to be much higher than those charged for Federal homing admin us lion or conventional Loans because of their lower inter est rates Bouford raid. Furthermore the a allows its Borrower to pay Only one Point called the loan origination fee or 800 in the Case of an $80,000 House. The seller pays the rest of the loan discount Point. Which Bouford has teen run Ai High As nine. On Cha or conventional Loans the seller and buyer can share the Point paying Burden. These costly Points and agents commissions that increase House prices Necin l be thorns in buyers sides however. Instead they can be their Besl tools for bargaining with homeowners. Asking the seller to pay doling costs which average soul 3 percent of the sales Price also can bean ice in to buyer pocket. In Many states the seller a peer to a for closing anyway. Itol Ford preps seminar attendees to make sates pitches of sons to homeowners stressing that the seller does t want to resort to paying an agent for example a House being sold by its owner for  lies across the Street from an identical House behind n realtor s sign priced at 187,500. In deciding what to of Flor on the House for Sale by owner Botsford tells seminar students to subtract the going rate for commissions from the Price of the House listed with the real Staie agent. In this ease it would mean 6 percent or $5,250 from s87.500. The buyer could after 18 2,2io and ask the seller to pay he 12.470 " closing costs. If the seller turns this bid Down the buyer could offer to add closing costs to the $32,230 Price or split the saved commission Cost and have him pay closing costs this strategy works Best in areas glutted with houses for Sale. Ilgi ves the seller a Chance to unload inc House and avoid sharing he profits with an agent. Assuming Low equity mortgages is another attractive Home buying method that even Scricc Membert Eligi ble for a no Money Down a loan should consider. In military communities new assignment often Force service member to sell their Homes soon after purchasing them. A prospective buyer can sometimes get a Good Deal by linking up with one of those Sellers before they list with a real estate agent. Furthermore no Point Are assessed when a loan is assumed and closing can be processed in As Little As a week. Still Botsford said Home buyers need t categorically flee real estate agents like tax collectors. Those neighbourhood Capet can recommend the town s beat escrow companies Banks and title companies. Realtors also make great tour guides. Botsford recommends buyers alternately ride with an agent and then drive alone returning to any for Sale by owner Hornet the realtor did t Point out. This lactic which must be done discreetly gives the buyer a 50-50 Chance of avoiding realtor inflated Price and helps introduce the area. I Joniford cautioned seminar students returning from stairwell living to the land of the split level to be most affordable mortgages urto d Vong monthly my Nunt in now Horn in 1967 comp Dlo v0ng Houm Hou i noon careful to make a financial decision not purely an emotional  ifs not always a Good investment to buy 3 House she  working in Goldsboro n.c., an air Force Community with a High turnover Rale she found that about half of the sales resulted in the realtor s profit exceeding the seller s. Some of Botsford s other Money saving hints ask the seller to pay the 1 percent funding fee on your a loan Ai part of his closing costs. Use the same Lille company As the Teller when assuming a loan and request the cheaper re Issue Rale for your title policy. Avoid Large j 10,000 Down payments if you Wilt have to move in three years or less Ai you might be forced to sell at a loss. Rent a furnished apartment while shopping for a House to avoid pressure to buy the fint House you View. Deposit no More than lion with Chr Purchase offer in Case you Don t qualify for your mortgage real tors May be belligerent but Call their Bluff. Buy resale rather than new Homes when possible As costs web As landscaping could be lost if the House is sold in a Short period of time. Other Home buying terning Kho Hokd for Meta ipod Center in West Germany include Bilbo in a March 26 of Elvelia  23 sem Bosch a May 14 Ramstein a july 23