Let’s face it—every dollar earned in today’s economy is a hard-earned one and blowing your budget on holiday spending is just not an option this year. While everyone is tempted to splurge during this festive season, you don’t want to be left paying the price for it in 2012.

According to financial advisor and author Leslie Greenman, the psychology of gift giving isn’t necessarily good for your financial health. The joy of pleasing everyone on your list with the gift of their dreams will quickly fade once you’re confronted with the impact it’s had on your finances.

Greenman offers the following great tips for controlling your holiday spending this year and keeping your finances on track:

• Assess your financials in advance. Before you even make your gift list, look at how much you can realistically spend, advises Greenman. If the amount you’re considering has you feeling anxious, then absolutely create a budget that has you spending less. Don’t allow your holiday spending to negatively affect your bigger financial goals.
• Eliminate discretionary holiday spending. Increased holiday spending often goes way beyond gifts to a wide range of expenditures, such as cards, wrapping paper, a new outfit for the office party, decorations, etc. These are easy expenses to cut back on, however. If you’re hosting a party, make it pot-luck. Send e-cards instead of expensive printed ones. And remember when it comes to holiday decorations, less is always more.
• Don’t shop when you’re down. With the joy of the holidays often comes stress and a dose of the blues. According to Greenman, studies show that we’re willing to spend more when we’re sad, so if you’re down, curl up with a holiday movie or spend time with friends. Save the shopping for when your spirits are brighter.
• Give the gift of time together. Chances are, many of those on your holiday gift list would like to cut back on spending, too. So suggest spending valuable time together instead of purchasing gifts this year. Have your parents over for a festive dinner with their grandchildren and plan to meet your best friend for tea and a movie. Not only does this decrease gift spending, it nurtures the true spirit of the holidays—relishing time with loved ones.
• Create a shopping plan. When you do head out gift shopping, establish a clear plan in advance: make a gift list and figure out where you need to go for each present; establish how much you will spend on each gift; decide a time you want to finish by; avoid malls/areas that tend to stress you out; try to complete your holiday shopping as far in advance as possible.
• Use cash. If you stick to paying with cash, you’ll be less likely to exceed your gift budget. Credit cards give us the false notion that we can spend more than we can really afford. Never make purchases on your credit card unless you can pay them off at the end of the month.
• Trade in rewards points for gifts or gift cards. If you have accrued rewards points from credit card use during the year, now is a great time to use them.

Rosemary West

RE/MAX Professionals Select

Office: 815-729-1814

Mobile: 630-807-9700

rosemarywest@remax.net

http://RosemaryWestTeam.com

Rosemary West
RE/MAX Professionals Select
Office: 815-729-1814
Mobile: 630-807-9700
rosemarywest@remax.net
http://RosemaryWestTeam.com

By Steve Cook

Price declines will end and average U.S. home prices will stabilize by Labor Day. Prices in even the hardest-hit markets will level out by the end of 2012.

That’s the latest prediction from the authoritative Moody’s Analytics and Fiserv, Inc., after an analysis of home price trends in 375 markets tracked by the Fiserv Case-Schiller Indexes.

Fiserv reports that home prices have fallen so far that they are at pre-bubble levels, creating affordable housing relative to income which, coupled with a slowly improving economy, will finally end price declines.

The slide in home prices has greatly improved home affordability. Relative to household income, affordability is at or close to pre-bubble levels in nearly every metro area across the U.S. This dynamic, combined with growing economic strength, leads Fiserv and Moody’s Analytics to project that average U.S. home prices will stabilize in the third quarter of this year. By the end of 2012, home prices in even the hardest-hit housing markets will level out.

However, while Fiserv and Moody’s project the national U.S. home price average will stabilize in the third quarter of 2011, a 3 percent decline is expected in the first half of this year.

“The first step toward restoring confidence in housing markets is an improvement in consumer sentiment, which we expect will increase slowly through 2011 due to stronger job gains and a falling unemployment rate,” says David Stiff, chief economist, Fiserv. “As confidence rises, the decline in home sales that started in 2006 will, finally, come to an end.”

Even as balance returns to the housing market, Fiserv Case-Shiller data forecasts the pace of recovery will be uneven across U.S. metro areas.

“Many metro areas have vast inventories of vacant homes, a consequence of both over-building during the bubble and high rates of foreclosure,” says Stiff. “New data from the 2010 U.S. Census provide estimates of the depth of the overhang of vacant homes in some markets. Between the 2000 and 2010 Censuses, the overall U.S. housing vacancy rate increased by 2.4 percentage points. In metro areas with the largest price bubbles and crashes, housing vacancy rates have jumped by 3 to 7 percentage points.”

The most stressed U.S. housing markets are characterized by unemployment rates that exceed the national average and high housing vacancy rates. Examples include Detroit, Las Vegas and Orlando, where unemployment tops 10 percent and vacancy rates are above 15 percent. Stiff noted the feedback loop that continues to exert downward pressure on home prices in these markets:

“Economic growth in these markets was highly dependent on residential real estate from 2002 to 2006, with many new jobs tied directly or indirectly to booming housing markets. When the bubble popped, these markets suffered the largest job losses. Rapidly falling employment undercut housing demand, causing home price depreciation to accelerate, leading to more job losses in residential real estate.”

The markets that escaped this dynamic are better positioned for more robust recoveries. Examples include Dallas, Milwaukee, Houston, New York, Baltimore and Pittsburgh. Stiff notes that while many of these metro areas did experience double-digit home price declines, their economic growth was more balanced during the boom years, relying less on residential construction. Today, these markets benefit from relatively lower housing vacancy and unemployment rates.

Rosemary West

RE/MAX Professionals Select

Office: 815-729-1814

Mobile: 630-807-9700

rosemarywest@remax.net

http://RosemaryWestTeam.com

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission.

The kids are out of school and chances are your summer plans include some sort of road trip. With gas prices well over $4 in many areas of the country, however, reducing your car’s gasoline consumption is critical to reducing the impact the trip will have on your wallet. And, as with most cost-cutting tactics, it’s the small steps you take that will add up to savings. Adhere to the following top 10 mileage-friendly steps and start spending some of that gas money on yourself and your family. 1. Drive smoothly – Chill out behind the wheel. Aggressive driving habits—i.e., speeding up to red lights, slamming on the brakes—actually lowers gas mileage. 2. Slow down – Most cars get the best fuel efficiency between 45 and 55 miles per hour. Driving at more than 60 mph can cut efficiency by up to 23%. 3. Reduce idling – Get out of the drive-through lane and park your car instead. Idling wastes more gas than turning off the engine and restarting. If your wait is over 20 seconds, turn the engine off. 4. Use lower-grade fuel – Regular unleaded gas won’t hurt most engines, even if premium is recommended. Unless your engine starts to knock or ping, stick to the lower grade. 5. Travel light – An extra 100 pounds of weight in the trunk or back seat can reduce mileage by as much as 2%. 6. Go without AC – Turn on the ventilator instead. It’s the most fuel-efficient way to cool your car. But don’t open the windows. Driving fast with the windows open burns more gas than the air conditioner. 7. Replace or tighten the gas cap – Wait until you hear the click after fueling up. Fuel evaporates through loose or broken gas cap seals, reducing mileage by 2% or more. 8. Check your tire pressure – Improperly inflated tires have a higher rolling resistance, which reduces efficiency. Keeping your tires at the recommended pressure can increase gas mileage by 3% or more. 9. Change the oil – Energy-conserving or synthetic motor oil can reduce engine friction and improve efficiency by up to 2%. 10. Replace spark plugs – Misfiring spark plugs can cut gas mileage by as much as 30%. While none of the above steps are difficult or time-consuming, they can have a big impact on your number of visits to the pump. Travel safely—and cost-effectively!—this summer.

Rosemary West RE/MAX Professionals Select

Office: 815-729-1814

Mobile: 630-807-9700rosemarywest@remax.net http://RosemaryWestTeam.com Copyright© 2011

RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved.

This material may not be republished without permission.

Rosemary West
RE/MAX Professionals Select
Office: 815-729-1814
Mobile: 630-807-9700
rosemarywest@remax.net
http://RosemaryWestTeam.com

Rosemary West
RE/MAX Professionals Select
Office: 815-729-1814
Mobile: 630-807-9700
rosemarywest@remax.net
http://RosemaryWestTeam.com

There’s no way around it—everyone gathers in the kitchen. Often the heart and soul of our home, the kitchen is also one of the critical areas that contributes—or detracts—from the value of your home.

As a Member of the Top 5 in Real Estate Network®, I have witnessed over and over how the kitchen can make or break a home buyer’s decision. Whether you’re planning to put your home on the market soon or simply want to enhance the functionality and atmosphere of your home, a kitchen renovation is always a good idea—it will pay dividends in terms of value, whether in the near or far future.

Your kitchen remodel should be approached with careful consideration and planning to ensure the best outcome. As all kitchen experts will tell you, the best designs are based on the “work triangle”—the space among the prep area, cooking area and sink. A good kitchen design ensures that there is never less than four feet or more than nine feet between these areas.

Here are some other key tips to follow when planning your kitchen remodel:

1.  Create a Budget. According to the Kitchen & Bath Association, while some remodels are more extensive than others, the average kitchen remodel costs between 10-20% of the home’s value. Leave a 10-15% cushion for surprises, such as unexpected structural repairs. Also avoid settling for a cheap option, thinking someday you will replace it with something you really want. Chances are that will never happen.

2.  Determine Your Priorities. Your kitchen design should be predicated on lifestyle. Do you have a large family? Do you love to cook? Entertain? Factors like these will determine both layout and the types of appliances you purchase.

3.  Research. Don’t jump headlong into a remodel. Take advantage of the copious resources available to research what you really want from your kitchen. Watch TV remodeling programs, start a notebook with magazine clippings, attend remodeling seminars (usually free at your local home improvement store), visit home shows, kitchen showrooms, neighborhood tours, etc.

4.  The Right Expert. Get referrals from friends, neighbors and your real estate professional, and then interview kitchen designers. Have them come to your home so they can see your current kitchen and make recommendations.

5.  Take Your Time. Don’t rush! Approach each of the above steps with careful consideration. Changing your mind after the project is started typically adds about $1,500 to the cost of a kitchen project.

6.  Get Everything in Writing. No doubt you’ve heard a horror story or two of remodels gone wrong. When using a professional for a remodel, the written contract should list each phase of the project; every product, including the model number; and copies of each contractor’s license, and workers compensation and liability insurance to confirm they are current.

Heeding the above tips should put you well on your way to a successful kitchen remodel. Please feel free to contact me for more information or for referrals on professionals to work with. Also be sure to send this email on to those who may be considering a kitchen remodel.

Rosemary West
RE/MAX Professionals Select
Office: 815-729-1814
Mobile: 630-807-9700
rosemarywest@remax.net
http://RosemaryWestTeam.com

Unfortunately, in today’s slowly recovering economy, many homeowners continue to find themselves in financial trouble. As a Member of the Top 5 in Real Estate Network®, I have worked with many clients over the past few years to help resolve their financial dilemma in the best way possible. There are many options available to distressed homeowners — unfortunately, most people are not aware of what these options are.

To help clarify confusion and shed light on optimal homeowner options, real estate finance expert Marian Anthony, answers five questions distressed homeowners often have:

1. Should I intentionally default on my home mortgage?
You’ve probably heard of people “intentionally” or “strategically” defaulting on their mortgage, willing to take the hit to their credit in favor of freeing up cash flow in the short-term. Rather than defaulting, however, homeowners should talk with their real estate professional about the potential for a short sale. A short sale could lead toward the debt showing as “settled” on your credit. Walking away and allowing the bank to foreclose still allows the second lender to render a judgment — and possibly garnish your wages. You may also have to file for bankruptcy to recover from the credit nightmare.

2. As a borrower, what are some ways I can gain leverage with my lender?
One way to gain leverage with a lender is to establish a “substitute mortgage” — a security pledge that is offered to the seller’s lender with a third party for a lesser amount of the current payment. Over time, this will result in a significant amount of collected funds that can be used as negotiating leverage to release the borrower from the debt, or dictate terms for a favorable loan modification.

3. Why have loan modifications and foreclosures become the predominant answer for so many in distressed property situations?
The reason why loan modifications and foreclosures have become the answer for so many is because many real estate professionals erroneously consider the short sale process to be too complex. It is essential to work with a real estate professional who is equipped with the right forms and contact information, and who knows how to orchestrate a short sale transaction.

4. Why is a short sale strategy more advantageous than a foreclosure?
The reduced payoff in a short sale can release you from the debt obligation. This often allows you to re-establish your credit faster and re-enter the market much wiser. A foreclosure can ruin a homeowner’s credit and take much longer to recover from.

5. I’ve heard borrowers in default need a ‘General Public Disclosure?’ Why?
Many people are not aware of the alternatives available to them when facing foreclosure. Knowing your options, as detailed on a General Public Disclosure document, can make all the difference in establishing a deal that’s in the homeowners’ best interest.

Remember that every distressed homeowner’s situation is unique; therefore, it is essential to contact a real estate professional — and often an attorney — to determine the best possible solution for you. I am happy to assist, so please feel free to contact me, and please pass this important information on to others in need.

Rosemary West
RE/MAX Professionals Select
Office: 815-729-1814
Mobile: 630-807-9700
rosemarywest@remax.net
http://RosemaryWestTeam.com

Moving into your brand new home is one of the happiest, most exciting moments of your life. Unfortunately, it can also be one of the most stressful. The perils and pitfalls of packing up your possessions and safely moving them to another location — whether around the corner or across state lines — can turn this momentous occasion into a nightmare.

As a Member of the Top 5 in Real Estate Network®, I have helped many clients over the years not just find the home of their dreams, but smoothly move into it as well. There are several important steps to take to ensure a successful move, such as these suggestions from Mayflower Transit:

1. Have the right supplies - Gather up cartons, bubble wrap, packing tape and newspapers before you pack your first box. That includes marking pens, so you can label each box with its contents and intended location in your new home.
2. Get a head start - The sooner you begin, the more stress-free you will be. Aim to fill and mark at least two or three boxes each day. While you are packing is the best time to de-clutter. Throw out or give away items you will likely not want in your new home.
3. Pack your own valuables - As you pack, set aside valuables or irreplaceable items such as jewelry, heirlooms or pieces of artwork that you’d feel more comfortable moving yourself. This should include important paperwork and photos.
4. Notify important contacts - Make a list of utilities at both locations that need to be notified of your moving date. Check off each as you make arrangements for shut-off and turn-on dates. List and contact creditors, Internet providers, and anyone else who will need your new address, including magazine and book or movie subscriptions. Don’t forget to file your change of address with the post office at least a week before you move.
5. Prescriptions and pets - Be sure you have enough prescription medications to see you through your moving period – and be sure to transfer existing prescriptions to a pharmacy in your new area. If you have pets, make plans well ahead of time as to where to keep them during the move – and how you’ll transport them to your new home.

Simple steps like the above may seem like common sense, but in the throes of such a major life experience, it’s the details that often get overlooked and cause the most problems. Please e-mail me for more moving strategies and feel free to forward this information to friends and family who may also be making the big move.

Rosemary West
RE/MAX Professionals Select
Office: 815-729-1814
Mobile: 630-807-9700
rosemarywest@remax.net
http://RosemaryWestTeam.com

In the do-it-yourself age we live in, many homeowners are ready and willing to take on home-improvement projects themselves. But while you may be ready and willing, the real question is, are you really “able?”

I have access to many great home-improvement resources thanks to being part of the Top 5 in Real Estate Network®. The following advice comes from HGTV’s Carter Oosterhouse. Heed these suggestions before you embark on your next project:

1. Focus on projects that will pay you back. For example, if you’re dealing with hot or cold weather, try to lower heating and cooling bills by properly sealing your home. Look for drafts around windows, doors, and vents,and then use caulk or weather stripping to seal them. It may not be glamorous, but it will pay you back down the road.
2. Know where to start. If you have never taken on a major project, start with spaces such as the living room, spare bedroom, or the garage — rooms that won’t limit your ability to function, says Oosterhouse.
3. Closet reorganization. Many times, people have maxed out their closet and have no more room to add, let alone organize. That’s when it’s time to evaluate. Donate clothes you no longer wear to a charity, store seasonal attire in a separate location, and separate his from hers.
4. Break down a big project. Planning is essential. As Oosterhouse says, if you think you can just start up any big job without a plan, then you are in for a world of frustration. Know your capabilities and limitations.
5. Know where the biggest ROI is. The improvements that will most add to the value of your home include, the kitchen, the master bedroom and bathroom. These can boost your resale value and attract buyers who want a space that’s move-in ready.

These are just some of many great suggestions for tackling home improvement projects. Feel free to contact me for more ideas and please forward this email on to your fellow DIY-ers!

Source: Lowe’s Creative Ideas magazine, 2010.

Rosemary West
RE/MAX Professionals Select
Office: 815-729-1814
Mobile: 630-807-9700
rosemarywest@remax.net
http://RosemaryWestTeam.com