I’d imagine that every homeowner and business owner would like to increase the value of their property now-a-days, especially after the recent devaluation period we have gone through.  Tough times call for unique solutions.  Here are a few.

 1.      Use funding available from rebate programs offered by federal, state, city and utility bodies for improving building energy efficiency. 

 Every homeowner I’ve worked with throughout my career would rather spend their home improvement dollars on the projects that “wow” them, those that they find gratifying.  They would gladly spend their money on a beautiful tile backsplash in the kitchen than on more attic insulation.  They will buy that soaking tub over the high efficiency water heater that serves it.  Now is your chance to upgrade these behind the scenes “support systems” with minimal impact to your wallet.  These rebate programs can make a sizeable contribution to the purchase and installation of improved heating and insulating systems and energy efficient appliances for your home or business.  Remember no matter how unglamorous these energy efficient upgrades may be, they are still an upgrade, and do increase the value of your property.  Take advantage of these programs, the funds are there for the taking.

 Residential rebate programs in Illinois

• Ameren Illinois Utilities – Residential Energy Efficiency Rebates
• City Water Light and Power – Residential Energy Efficiency Rebate Programs
• ComEd – Smart Ideas for Your Home Efficiency Program
• MidAmerican – Residential Energy Efficiency Rebate Program
• North Shore Gas – Chicagoland Natural Gas Savings Program
• Peoples Gas – Chicagoland Natural Gas Savings Program

   Commercial rebate programs in Illinois 

• Ameren Illinois Utilities – Energy Efficiency Rebates for Businesses
• City Water Light & Power – Commercial Energy Efficiency Rebate Programs
• ComEd – Smart Ideas for Business Efficiency Program
• MidAmerican – Energy Advantage Commercial New Construction Rebate Program
• MidAmerican – Commercial Energy Advantage Rebate Program
• North Shore Gas – Chicagoland Natural Gas Savings Program
• Peoples Gas – Chicagoland Natural Gas Savings Program

(Find incentives for other states at dsireusa.org)

 2.      Use Available Federal Energy Efficiency Tax Credits

If you install energy efficient improvements to your principal residence in 2009 or 2010, you can apply for a tax credit by using IRS tax form 5695.  You must also obtain a Manufacturer Certification Statement (showing qualifying model of your installed home improvement product(s)) and keep it in your records along with your receipt.  The range of energy efficient items that qualify for these tax credits go beyond what is covered in the rebates mentioned above, and must also be a qualifying model of:

• exterior windows, skylights, storm windows
• exterior doors and storm doors
• metal or asphalt roofs
• insulation
• central air conditioning
• heating systems – air source heat pumps,  natural gas or propane furnace, oil furnace, gas/propane/oil
• hot water systems – hot water boiler, advanced main air circulating fan, geothermal heat pump, gas/oil/propane/electric water heater
• Biomass stove
• Solar water or electric systems
• Wind energy systems

 Under the American Recovery and Reinvestment Act of 2009 these tax credits are available through the end of 2010, have been raised from 10% to 30%, and maximum credits have been raised to $1,500 from $500 (geothermal heat pumps, solar water heaters, and solar panels are not subject to this maximum credit).  Minimizing your tax accountability reflects positively on your bottom line.    

 3.      Lower Your Monthly Operating Expenses

Through the energy efficient improvements you have added, your monthly utility expenses will be reduced.  Your return on investment (ROI) for these upgrades increases at even a greater rate when you factor in continually rising utility costs.  Lower monthly expenses reflect positively on your bottom line again.

 4.      Increase Your Comfort Level

New windows, better insulated attic, higher efficiency furnace, etc. all deliver a more comfortable living or work space.  This attribute plays a vital role in property value and should not be underestimated.     

Increased value “from your property” and “of your property” can be achieved even in today’s economy.  See what rebate programs apply in your area and what upgrades can be done for minimal investment.  These energy efficient upgrades will increase your property value, while also providing a tax credit, lower operating expenses, and a more comfortable space to live or work in.    

Karyl Doran

Dwell Development

No, I didn’t mean your JEANS. Studies show that changes in your lifestyle can ‘turn on’ the good genes and ‘turn off’ the bad ones.

That is good news for anyone who has a family history of high blood pressure, high cholesterol, type 2 diabetes or being overweight. These lifestyle diseases—so called because they are most often related to our lifestyle choices– are primarily responsible for the strain on the healthcare system. Our lifestyles of little activity, high calorie and high fat foods are the main culprit.

If you do have a family history of these diseases it means that you may be more prone to developing them. However, this does not mean that you are destined to get the disease. You do have control!! This is an important message and can help to shift one’s attitude about family history.

You can change this predisposition by altering your lifestyle choices. And, those choices don’t need to mean deprivation or sacrifice. Successful change means finding foods and activities that are pleasurable to you, while still being healthy. It may mean that you change what you are eating, but it doesn’t mean you feel starved or deprived. You can still have some of your favorite foods—probably in smaller amounts, though.

Eating a healthy diet does not mean deprivation; rather, it is finding a way of eating that you can live with for the rest of your life. How does that prospect compare to taking medications for a chronic disease for the rest of your life?

In thinking about these changes, consider how you will benefit. If the benefits outweigh the disadvantages, it will be a bearable, worthwhile change. Do you want to feel well, feel healthy and be able to do the activities you desire? Then, reflect upon these questions as you think about making changes:

What are you doing to keep yourself healthy?

If you decide to ____________ , what would be the benefits?

If you stopped doing __________, what would happen?
 

So, if you want to fit into those jeans that haven’t fit for awhile, remember, your genes don’t control you!

Polly Wilson
Delight in Healthy Living!

Today’s real estate market has an abundance of short sale, foreclosure and distressed properties available. These properties can be wonderful opportunities for first time homeowners, move-up or move-down buyers and investors. They may not always be a terrific “deal” because of condition, comparables or the seller/lien holders position.

A short sale occurs when a lien holder is willing to accept less than the full mortgage pay off.  They “short the loan” to allow the homeowner to sell the property. A property is a candidate for a short sale when all liens, plus costs of sale, exceed the market value of the property. These liens included mortgage liens, mechanic’s liens, tax liens, unpaid judgments and unpaid HOA fees.

Lenders usually agree to a short sale rather than foreclosure since a foreclosure can cost the lien holder an estimated $60,000 and take up to 18 months to complete. It is also better for the homeowner to have a short sale. It avoids the foreclosure/bankruptcy position with all of its credit/financial restrictions and stigmas.

Short sales can be VERY TIME CONSUMING and require patience from absolutely everyone involved: seller, buyer, Realtor, attorney and lender. Buyer’s offer acceptance and approval of offer can range from 2 days to 2 months or more. Some short sales have been known to take as long as 6 months from beginning to end. As of 2008 the average time was 8.1 weeks according to the National Association of Realtors. The lien holder has the final say. If there is more than one lien holder on the property that can slow down the process significantly.

A foreclosure sale deals with the lien holders. It occurs when the lien holders take possession of a property. It can occur after the attempt at a short sale process. In a foreclosure sale there is usually no “wiggle” room for any repairs. These properties are 99.9% of the time are an “as is-take it or leave it sale”.  The banks/lien holders have done their homework and know the comparables in the market.

Many times foreclosure sales, like short sale properties have suffered the abuse of the homeowner. There are distressed properties that have had all the appliances, doors, windows, cabinetry and even furnaces and ac units removed. Foreclosure sales are lengthy sales but most often not as lengthy as a short sale purchase.

When navigating the sea of a distressed property purchase there are some basic guidelines:

• Work with an experienced Realtor who knows the procedure and the subject property comparables
• Sales are on a mostly “as is”—“take it or leave it” basis
• Properties will need repairs and may not have appliances, electricity or even a furnace
• Always have any inspections of the property upfront—contractor, termite, radon etc.
• Consider the cost of repairs in the offering price
• Don’t expect these sale types to flip for a great price
• Don’t expect “bargain-basement” prices—banks know the comps
• Financing can be difficult if the property is in deplorable condition
• Develop a working relationship with a mortgage/finance person
• Be sure and use an attorney who is familiar with distressed property sales
• Sign a buyer’s agency contract with your Realtor
• Allow a lot of time for a closing in most cases—expect hassles and delays
• Expect more paperwork and communications between you, your Realtor, mortgage officer, inspectors and attorney
• Remember to work within your budget—purchase price plus repairs (inside and out)

Navigating the sea of distressed properties can be rewarding if you follow the above route. By working with an experienced Realtor you will not hit as many rough “seas”. It is never simple but can be worth the trouble. Remember the adages “caveat emptor” and “be prepared” and your process will be as comfortable as possible. It will certainly be “smoother sailing” by following these guidelines.

For more detailed information on how to buy a distressed property or for a list of currently available local distressed properties, experienced attorneys, mortgage officers or home inspectors, contact us  via email:  maureen.spriggs@cbexchange.com or call 847-441-1028 the 24/7 voice mail and we will respond quickly.

Maureen Spriggs
Realtor, Coldwell Banker

While on vacation recently with my Norwegian cousin and her family, I discovered the concept of “going viking”. My first thought, probably yours as well, was of raiding and pillaging while sailing about the world in small boats and eating lots of dried fish. Thankfully, the phrase has taken on a new meaning that applies very aptly to the life of entrepreneurs. And, within the new definition of going viking, there is a valuable perspective for our current rough economic times.

Tom Veblen and Kate Rogers provided this new definition of going viking in Viking, the July 2009 Sons of Norway magazine, in an article that illustrates how modern Vikings pursue their passions:

“’to be venturesome, explore, discover; to exert oneself, aspire; to take a stab at, have a go or crack or whack, or shot at; to pursue hard, bold, dangerous or important undertakings’”.

Veblen’s take on going viking was related to the current development Norwegian-American culture on the North American continent, but for me, it resonated as an engaging metaphor for the pioneering spirit that drives so many individuals to build and run successful businesses of their own. Most entrepreneurs will acknowledge this drive, but the delight of entrepreneurship – the`bold’, `dangerous’ and `important’ aspects – is often lost in the day-to-day working on the multitude of responsibilities in manufacturing or designing products and services, delivering to customers, collecting revenues, paying bills and managing employees.

The modern day entrepreneur may long for the imagined freedom of a Viking trip over the seas to escape the often mind-numbing details that fill the calendar of any business owner, but in reality, the head Viking faced many similar challenges whether at sea, in battle, or at home. The Viking leaders had as many jobs to do as the typical entrepreneur. The successful Viking leader had to plan and lead all activities that took them from the home fires to foreign lands, into battles against familiar and unfamiliar opponents and had to see to the division of spoils from the raids. And, the Viking chief headed up HR as he or she negotiated personal disputes, saw to the arrangements for marriage and inheritance among the Vikings and integrated any new members of their group (slaves or otherwise) into village life. The Viking leader had to be a strategic and passionate visionary, excellent in many capacities (sailing, boat making, fighting, negotiating settlements, etc.) and a peacemaker among the highly charged and committed warriors of the tribe. Does this role sound familiar?

The most successful Viking chieftains and modern day entrepreneurs have common traits and behaviors: keeping the vision for long-term and short-term success in mind while also attending to the more mundane operational details with a team made up of people with skills and perspectives that complement the leader’s own capabilities. Effective leaders know when to bear down on the minutiae to ensure a specific tactic is implemented in support of larger plans and can encourage underlings to act independently when the situation calls for their particular input. They insist that subordinates work out their own conflicts until it is clear that any unresolved conflicts may jeopardize the entire enterprise. Such behavior grows new leaders and contributes to a strong sense of morale among all involved in the enterprise. The Viking chief’s job was 24/7 and often as complex as that of any modern day CEO.

While an entrepreneur’s challenges today may not result in physical death, as many of the Viking adventures did, the current economic climate presents some intriguing comparisons to the conditions the earlier warriors faced. The Viking economic landscape was poor – due to limited good farming land, severe climate, and lack of easily retrievable and marketable natural resources – so they sought new opportunities beyond their own shores.

Entrepreneurs today face uncertainty as well – tight credit, slowing sales, and unstable relationships with suppliers. The question then is what would going viking look like today for an ambitious entrepreneur? Entrepreneurs must identify and plan ways to exploit new opportunities for growth and success and then launch their own longboats in search of renewed success. Imagination, courage, skill and perhaps a touch of the Viking wanderlust will see the entrepreneur’s business through to a greater level of success and satisfaction even in today’s rocky world.

Kim Dougherty
Birch Advisory Services International