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February 22, 2006

Buyer Beware

Curtis Moore | February 22, 2006 02:04 PM |

Hal Wagner knows a fake signature when he sees one.

Wagner owns Ace Sports and Tickets at Oak Park Mall and in Lawrence. Wagner said 75 percent of autographed items are fake. He collects sports memorabilia and has been in the business for 18 years. Wagner owns 10,000 autographed items. Recently, a woman inquired about purchasing a football mini-helmet signed by Indianapolis Colts running back Edgerrin James. Wagner told her $125. She said she could buy one on the Internet for $35.

“There isn’t a chance in hell that autograph is legitimate,” Wagner said he told the woman.

With the advent of eBay, fakes in sports memorabilia are popping up all over the place – especially on the Internet. The opportunity to rip someone off is so easy on eBay, a number of eBayers don’t hesitate to scam the online shopper. However, steps can be taken to ensure that you don’t get scammed.

Todd Jones of Olathe uses eBay to purchase items for his collection – mostly Kansas City Chiefs merchandise – and he disagrees with Wagner’s 75 percent estimate. Jones said he believed maybe 25 percent of autographs are fake, but found 75 percent outlandish.

Jones never buys without a certificate of authenticity, which ensures the legitimacy of an item. However, sometimes these certificates are also forged.

“When you buy from an Internet site, you have very little recourse,” Wagner said. “Go try and find the person who sold it to you. All he has to do is change his Web site, his e-mail.”

In Lawrence, Kansas basketball memorabilia is the hot item. Autographed items from former Jayhawks fill Wagner’s Lawrence store. Autographs from mostly current players flood eBay. One seller of a signed Sasha Kaun jersey on eBay claims: “Stop paying high prices for a signed jersey that cost even more money to have framed.”

On the “buy it now” option on eBay, someone could purchase the Kaun jersey right now for $13.99. But when a deal looks too good to be true, it probably is, Wagner said.

Dale Jones, a Jayhawk fan from Goddard, attended the Baylor game at Allen Fieldhouse with his family. Jones and his family waited around after the game for autographs. Jones was getting a ball signed for a co-worker. Autograph seekers who bring floor tiles to the game irk Jones, because he said he knows they plan to turn around and sell the tiles. Jones said he would never consider selling autographed items.

“I would think it’s not right to do that,” Jones said. “I think the players should sign for kids. It should be for families. I know it’s hard to differentiate.”

Wagner stays away from the current Jayhawks. He only hosts autograph sessions at his stores for Kansas players after they graduate, and the signings are set up through the player’s agents.   

“We don’t want to be partially responsible for any college kid losing his eligibility because we were involved in an autograph signing,” Wagner said.

The Downtown Barber in Lawrence, features a wide array of Jayhawk memorabilia throughout the shop. John Amyx, owner of the Downtown Barber, said he has collected memorabilia for 35 years, since his childhood.

Amyx’s collection comes from items his customers have given to him or sold for a “free haircut” – like a box of Flutie Flakes a customer once gave him that is displayed in the store. Amyx holds onto memorabilia from games he attended a long time ago, such as the free towels KU gave out this year at the Missouri games. He stores posters and stuff he has collected in an old Coca-Cola cooler in the shop and eventually displays the items on the shop’s walls.

Amyx also buys memorabilia at auctions – he attends the St. Patrick’s Day auction every year held at Liberty Hall – but Amyx said he never strays onto the Internet to make purchases for his barbershop. He doesn’t trust the stuff sold on the Internet.

“Autographed pictures, jerseys and balls, anybody could have written on those,” Amyx said.

So what steps should a new collector take to avoid the signature scams?

Wagner always starts by checking the signature. Wagner, a certified authenticator, said he rarely comes across a signature he has never seen before. If Wagner has never seen the signature or questions the legitimacy, he checks his records – a database of autographs – or he asks the seller to invest in getting the item professionally graded. If they object, he doesn’t buy.

Wagner sends any questionable items to the Professional Sports Authenticator (PSA) in Newport Beach, California. Wagner said PSA is the leading authority on autographs.

Wagner said some sellers have no idea their items are fakes.

“I see people bring in merchandise all the time that is so hideously fake that I crack up laughing,” Wagner said. “People bring in machine signed autographs thinking they’re real or Babe Ruth signatures on balls that were from the 1970s and 80s. Unless Babe Ruth has come back from the dead, the odds are it’s not real.”

If a collector isn’t sure something is real, ask questions and as Wagner said, be sure it is someone you can track down.

When e-mailed about his collection of Jayhawk memorabilia, the seller of the Kaun jersey on eBay, responded, but said that he would not waste his time answering questions. When messages were sent to three other sellers on eBay of autographed items from current Jayhawks, no one responded.

Wagner said he checks eBay occasionally when he needs a good laugh, but never to buy anything. Like he said, if you want to find the sellers, they could be to Mexico by now – or erased their Internet identities.

Buying sports memorabilia is a risky business and the Internet has only increased the chance to get scammed.

“When you buy anything on the Internet that’s autographed, you’re taking your life in your hands,” Wagner said.







February 21, 2006

Fed Interest Rate Hike Has Mixed Effect on Housing Market

Anna Bassham | February 21, 2006 12:35 PM |

Students may find it difficult to afford houses in the near future, thanks to the recent Fed's interest rate increase.
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Federal Interest Rate Hike Has Mixed Effect on Housing Market

KU graduates looking to buy a house in the next few years may run into money troubles.

The Fed recently bumped short-term interest rates another 0.25 percent, marking the 14th increase since June 2004. Since then, the rate has increased a total of 3.5 percent. According to banking sources, this will make home equity lines of credit and adjustable rate loans more expensive.

Many students have not given buying a house serious thought yet. However, students should be aware of the housing market for the next few years as the interest rate may continue to increase.

Melissa Titel, a 2005 graduate of the University of Kansas, said that the rate increase has caused her to save more money for a future home.

“As a first-time home buyer, hearing about the increase does make me a little nervous because I am not as educated in the area as I would like to be, but it won't affect my plans to purchase a home in the near future,” Titel said. “It may, however, encourage me to save a little more in the mean time.”

Diane Ruggiero, Chief Executive Officer of the Kansas City Regional Association of Realtors, said that one of the key factors driving the housing market for the past three to five years has been low interest rates.

The current rate is 6.2 percent, and is still historically low. However, the latest increase means rates are steadily edging higher.

“Housing economists believe that until rates hit seven percent or above, the housing market will not be terribly affected,” Ruggiero said.

Tom Petruno, a writer for the Los Angeles Times, feels the latest rate increase could have some impact on consumers with adjustable rate home mortgages.

“For homeowners with a popular type of adjustable-rate mortgage that is pegged to one-year Treasury yields, every notch higher could spell bigger monthly payments come adjustment time,” Petruno said.

However, there are signs that the overall impact of the Fed’s latest increase on the housing market should not be negative.

Ruggiero said the increase might even stimulate the market and cause more people seeking houses to go ahead and invest.

“When rates begin to creep up, it actually motivates some people to buy because they know that rates are going to be increasing,” Ruggiero said.

Economist Walt Molony at the National Association of Realtors said that long-term rate increases have a bigger effect on the housing market than do increased short-term rates.

“Short-term rates affect the smaller portion of the market that uses adjustable rate mortgages, and by indirectly by dampening consumer spending,” Molony said.

Even so, some current homeowners may be more affected by the short-term rate increase. Consumers who already have a home and are paying off the mortgage may find the rate increase bothersome.

Marlene Merrill, a homeowner in Lawrence, KS, said she delay her home refurbishing plans until the rates come back down.

“It makes me think about changing some of my home improvement plans. I will probably put off building a new back deck for a year,” Merrill said.

Sherry Hunsicker, a loan consultant and branch manager at Hilco Mortgage, said that swelling productivity costs, increased hourly wages and a low unemployment rate encouraged this increase. Ruggiero said that these rate increases should continue steadily.

Molony agrees with Ruggiero that the increases will continue, according to the ups and downs of the housing market and the economy in general.

“We think another quarter point increase is likely from the Fed...possibly two. The timing depends on inflationary pressure,” Molony said.