Tomorrow is Valentines Day and is meant for those who are in love, care about one another, want to express their feelings towards someone special but need that nudge and hence, some feel Valentines Day is the day to make that move forward in their life.

I just saw an awesome video of a swimmer who proposed to his girlfriend on the podium.  He had to win the race or his plot would have gone down the tubes. 

I remember way back "in my day", we used to make our handmade valentines for everybody in the class.  The teacher would give us a list of everybody's names printed out on a piece of paper and so for two nights, I would be home working on these valentines.   When Valentines Day came, we each had our own handmade mailboxes and the Valentines would be dropped in our boxes.  We couldn't open them at school but had to wait until we got home.  It was a lot of fun to make these valentines because they were personalized and some of them, well, we found out that "Bobby" or "Steve" had a crush on us .... at least for that day.

Lots of money is spent on Valentines Day and the price for roses jumps up pretty much the week before and the week after Valentines Day.  To me, it was never about the roses but about being with that certain someone, that night, for dinner or watching a moving and cuddling on the sofa watching a movie together.

No matter what you do for Valentines Day, just make sure that you make is personal but whatever you do, don't buy your significant other an appliance!  My Dad's Advice to my brothers prior to their marriages. 

Have a Happy Valentines Day and I hope it is something extra special for you.

CNNMoney wrote an article about "9 Remodeling Tips to Make Your Home Feet Bigger" but I disagree partially with the article and here is why:

I agree that if someone needs to put a hold on selling their home that they should rethink and recreate the existing home to ease the frustration of why the owner wants to move/sell and/or remove the subconscious mindset of "this home is driving me crazy".

This kitchen is a perfect example for the homeowner who needs more space but may feel confined.

I love counterspace.  Free of clutter.  Free of everything except the countertop. 

If you look to the right above the stainless steel stove, you see a fan hood with a double cabinet above it. 

Next to the Stainless steel refrigerator is a microwave sitting on the countertop.

Then there is that cabinet space area above the kitchen sink.

Here's some ideas to increase and recreate space for this kitchen:

A.  Remove the exhaust fan/hood above the stove and the cabinetry above the fan/hood, install a block - roughly 3" from the top and then install the microwave so that it is in proportion to the amount of space needed for cooking.

B.  Remove the cabinets above the kitchen sink (if you do not prefer to have the microwave above the range/stove) and install the microwave above the sink.  (not totally idea but another option which isn't ideal but it does confirm to the triangle and messes would be caught because you would be above the kitchen sink.  : )

C.  Change the cabinet doors.  Have the outside framework of the cabinets changed to whatever color, grain you prefer but this is what would open that kitchen and create more space.  The three doors on the upper cabinets adjacent to the fridge and left of the kitchen sink, have the doors opened up with like a raindrop type of glass inset so you can see into the cabinets but not fully.  Or, just have those doors with glass. 

D.  Want more dramatics with those cabinets:  After you replace the front doors and use some glass inset doors on the upper cabinets, if you have some fine dishes or items you wanted to display and show, remove the wood/particle shelving in those cabinets and install a thicker pre-cut glass shelving so that you can install one of those stickum lights on the upper ceiling of those glass inset cabinets and it would shine all the way down through the glass shelves.

E.  Open that kitchen up more?  I would suggest removing that fake bulkhead as it isn't housing any electrical, plumbing, etc.  and then I would add some quality crown molding to the refaced kitchen cabinetry. 

This is just one example of how you can make some change in your home whether you are staying or are in a holding pattern until the market improves but would like to create some more space without moving walls.

When we were kids, my Mom and Dad always took us on vacation during the Christmas Season (as it was a low time in real estate appraising due to holiday) to Florida.

We looked forward to that annual trip to Florida for two reasons:

1.  The first person to spot a palm tree got a nickel from my Dad; and

2.  We got to choose which home we wanted when we grew up and got married. 

There are four of us in my family and I rank #2 in age.  I took my time choosing my home (a/k/a honey moon cabin) because I wanted something spacious, grand, land, etc.  By the time we got to my next sibling, well, he has a hard time making decisions and hence, my baby sister didn't get to choose her home until we hit Georgia or Florida but her home had to be chosen within (x) miles before we hit our destination.

The photo you see is generally the pickens my sister got because she felt she had to make a decision before (x) amount of miles. Not much of a "honey moon" cabin, now is it?

Here's my point:  You are buying your first home, you don't panic like my sister and just choose something because your time may be limited, there might not be the right home you desire and you settle for second best.

Financial Wisdom:  When you are buying a home, look at how much you really want to spend each month and not how much you qualify for.

The next step to Financial Wisdom:  Does the home you are looking for have room for improvement or are you banking on the market appreication/depreciation to carry you?

The Third Step to Financial Wisdom:  What do you really need in a home vs What do you really want makes a huge difference.  If the home you select, has potential for growth, you have a winner as you will be able to live in that home for years to come and not transition every 3-4 years.

The Fourth Step to Financial Wisdom:  If you are thinking about buying a condominium, look at the history on resale over the course of the last ten years of that particular building.  Check to see if there are any special assessments and how often have special assessments been implemented for that building? 

Buying your home is an emotional time but should not be an emotional decision. 

Oh, by the way, my sister finally realized that she needed to wait and she finally got that honey moon cabin that she wanted in Florida. 

Personal Financial Troubles don't happen overnight.  Most of the time, we are in denial and want to forget that we are heading towards the loss of our home or bankruptcy.  The denial?  If the credit card still works that means I still have credit and the ability to buy. 

Who are we fooling? 

We need to get a back bone and recognize that there is a problem.  Once we do, the ship will turn around for us but it takes dedication and commitment to make it happen.

Heres the Red Flags:

Credit Card Payments:  If you are making minimal payments on your credit cards or returning items to keep the credit card balance higher, you've got a borrowing problem.  If you can't pay your credit card balance in full at the end of the month, then pay at least two minimum payments to keep yourself from spiraling down into financial trouble.

Emergency Money:  This is not a savings account but a bone fide Emergency Money Account that should be equal to six months of your monthly income.  This is a bottom basis for Emergency Money and it would be ideal if you had more in this Emergency Fund but we have to start some place if our Emergency Money fund is ZERO!

Bills:  Are you throwing the bills into a box and picking out which ones you want to pay for the month?  Or, are you just overstretched for the month only.  There is a difference and one says you are heading into finaical trouble and the other says, you are okay but be careful.

Credit Scores:  If your credit score is below 620, that is another red flag that says you are in financial trouble or heading that way.

Bouncing:  I have a friend who was paying over $350 a month in bounced check or late payment fees to her bank or credit cards.  If this is happening every month you are in financial trouble.

Words of Encouragement: 

We were not born to understand our finances.  It is something that is learned.  Do not beat yourself up because you have two or more of the red flags.  What you need to do, is to read and learn from your mistakes and take baby steps.  I am a believer in baby steps.  The sad fact is few people take the courage to reach out for change.  I hope you reach out and take that first baby step.

Why do I think Chicago's Lincoln Square is heading into a Seller's Market?

Basically, supply and demand are not in balance.  We have roughly 45 homes for sale in Lincoln Square right now with a median list price in the low to mid $400K.  The 45 homes that are currently on the market are not even the prime Lincoln Square Neighborhood but surrounding extended parts of Lincoln Square.

We have a lot of condominiums but most are roughly below $240K and so there are few 3 bedrooms to choose from and those are pretty desireable.

The buyers are out there but the type of properties that those who are transplanting from another neighborhood in Chicago are move-up buyers. 

In 2011, Real Estate Sales were there worst yet, I saw signs going up in the front yards of a lot of Lincoln Square Neighbors that did sell.

It will be interesting to see what happens in sales in Lincoln Square this year but if you are serious about selling, consider getting consultation on ways to appeal to the buyer.  When the home appeals, the buyer buys.   The inventory is old, stale or not appealing and this is your chance to come out like a shining star on the selling of your home!

I cannot emphasize enough the importance of curb appeal, decluttering, neutralizing, and enhancing as that adds up in the final net selling price for you. the Chicago Lincoln Square Home Seller.

Chicago's Winter Chill is officially here and one does not see to many people window shopping and parking spaces or unlimited right now in Chicago's Lincoln Square Neighborhood.

Ways to Survive Chicago's Cold Chill:

1. Dress in Layers and make sure you wear gloves and a good warm hat on your head besides the other basic winter clothing essentials.
2. Drink Gatorade, Water and Juices to keep hydrated
3. Don't crank up your thermostat but add an extra layer of warmth.  A lot cheaper on the heating bill.
4. Keep at least a half a tank of gas in your automobile!
5. If you are going to use a free standing heater, make sure that it is digital and should it fall over, that it has an automatic turnoff.  DO NOT go to sleep with this heater on!
6. When in doubt and the rooms are cold, have a camp out in one room to stay warm.
7. Make sure that the pipes are secured and insulated.  When in doubt, open the doors and allow the heat to come into cabinet area to minimize ruptured pipes.
8. Slow drip from the faucet when in doubt with your water lines.
9. Eat the proper food and make sure you have plenty, just in case there is an emergency and you can't get to the store or the store can't come to you (should be all the time, but focus especially during the Chicago artic like chill)
10. Stay inside and spend more family time together

The biggest item on my list is:

Check up on your senior parents or your senior neighbors.  They will be huddled in one room and will not complain but don't realize that they need to eat and drink the proper fluids.  They are on a fixed budget and heat is the first thing they will cut back with food being the next item.

Be safe and don't take risks as my Dad has always said:  "Physical things can be replaced but not human life."

It has been reported by the media that Chicago Area Foreclosing Filings Decreased in 2011 and that is because these filings were compared to another year, when this whole mess started. 

I believe, as being reported by Reaty Trac and other real estate networks that foreclosure filings will increase in 2012.  Here's why:

In 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation was created.  However, as of today, there is a deadline of December 31, 2012 in which taxpayers/homeowners may qualify under the guidelines of the Mortgage Forgiveness Debt Relif Act of 2007 whereby they can discharge the amount of forgiven debt as qualifed income.

Reference

However, right now, if you complete either the Short Sale or Foreclosure process of your home after the Mortgage Forgiveness Debt Relief Act of 2007 expires, you will be responsible for the differenc, as taxable income.

This is the reason why filings will increase in 2012.  The longer you wait to make a business decision, the worst you are.

Proof?  Look at how long the lines are at the U.S. Post Office the last day income tax returns are to be filed.  Hours increase at the U.S. Postal Service and car lineups are recording breaking every year.

SIX WAYS TO RETIRE WITHOUT A MORTGAGE:

Kiplinger wrote an article today about ways to retire without a mortgage and I pretty much agree and so I am going to share with you what my Grandfather, Opa layed out for us when I was a youngster:

Never have a mortgage longer then 7 years.

Opa believe in reinvesting in real estate and one couldn't save when one was paying so much interest on a mortgage.

Pay Your Taxes, Pay Yourself and Pay God:

Opa was a strong believer that if at the end of the pay check there wasn't any money, then you didn't charge but you saved.  Actually, when one did charge, it wasn't a revolving charge back then but at the end of the month.  So, Opa's philosophy was if you can't pay for it in cash, then you don't need it. 

Buy what you need:

Have you ever gone into the grocery store without a list and come out with ten more items the the one item you needed?  My Dad has a list every week that he gives my sister, Debbie, when they hit Meijers in Grand Rapids, Michigan.  He now understands that it is wise to buy when on sale and have a personal inventory as that will save you money on your required monthly expenses.

The above is the foundation.  Now, let's look at a stronger way to retire without a mortgage ....

• Make Extra Mortgage Payments:  - when you make extra payments during the course of the calendar year on your mortgage, you are reducing the principal faster.  For instance, Opa and my Dad had/have always said to us that when we made two extra payments on a 30 year mortgage, it reduces the mortgage down to roughly a 19 year mortgage. 
• Refinance:  Totally agree with this one as I have a lot of friends who have asked if they should/could refinance their home for a lower interest payment.  This is so ideal as most of my friends have been in the 6.5 to 7.25 interest rate on a 30 year mortgage but had 25 years left on their mortgage.  So, the idea isn't to refinance and reduce your monthly payment vs reduce the amount of interest you are paying to the Bank!!  You pay less interest and you put the money back into your pocket.
• Downsize your Home:  The above home was a 1.5 story home but it had 8' outside walls on it so there was plenty of room when I redesigned this home.  However, as we get older, let's get serious and rethink space:  When you are an empty nester, do you require as much space as you did when you were raising your children? 
• 

Here is a photo of the garage to the redesigned home but my point is, if you can't refinance your home but have equity, then another route to go is to downsizing.  That way, you have a smaller mortgage payment, less real estate taxes (those are monstrous in Chicago) and less stress on the monthly commitment.

• Move to A Cheaper City: I have several retirees that are seriously considering moving away from Chicago because of the monthly real estate taxes.  One of my friends/clients is paying $750 a month in real estate taxes!  On a fixed income, that is a "bite in the britches" and not smart thinking.  Moving to a cheaper City, while not ideal, is an option.
• Get a Roommate! With the cost of maintaining a home, plus the costs to fuel the home let alone the real estate taxes, another great option is to rent a room or get a roommate.  Set the boundaries, the rules and do your research but another great way, especially, if this is a parent who is living alone but needs some monitoring if the children of the parent are not in the immediate area. 
• Rent vs Own:  Easy, easy but what happens if you run out of money?  When one owns a home, they have options, including a reverse mortgage. 

Bottom is we need to consider what it is going to take to maintain our lives when we retire.  The less baggage, such as a mortgage and credit cards, the better our retirement life.  I believe Opa was right with his rules:: Live within your means and not your credit card.
 

Opa also said:  "Save, like there is no tomorrow."

Last night as I was sitting down and taking a break before I started my next round for the evening, and there it was on television.  The Federal Government had cut back the support for CDC by 90%.  How does that effect us? 

Well, what I realized with cutbacks from the government, we need to make sure that we step up to bat and protect our environment, especially the health of our children.

See, the Lead in the Paint that is peeling on your front porch, ceiling of your porch, back porch, side walls, if you home was built before 1978, and most of Chicago qualifies for it, has lead in it.  But when people walk on the porch they break down the paint and creak dust which goes into our air and it effects our children.  It gets brought into the house from the shoes, etc.  We need to have a 50% reduction if we are going to help our little ones have a better life and not suffer from brain damage, headaches, illnesses, due to this peeling paint.  The City of Chicago right now feels that a couple coats of paint on the walls is a good thing and removal of those old lead blinds is another good move.  But it isn't enough because children are inhailing and bumming those walls. 

Rethink your logic on the safety of your home.  Play it safe.  Play it smart. 

Michigan has a slogan:  "Bring them back alive" on their expressway signs.  I think Chicago needs to push for a slogan that concentrates on keeping our children safe and healthy. 

Because, this stroller can be put back up on its wheels.  With the effects of lead for a child, the same isn't true.

When doing a serious Chicago Gut Rehab on your home, one of the issues that always is raised is:

Can I get more height to my basement without having to dig down?

First, one has to consider if there is the potential of being able to dig down below the basement subflooring due to the depth of the footings on the outside walls.

One can, and it has been done if one is determined to retain the outside walls, by a slow process to deepen the footings which would allow more height in the basement.

Redoing the outside footings is costly and timely.  So the question is:

1.  How much height do you really desire in the basement?

2.  Would you consider tearing the building down completely and putting in a new foundation?  (But more then likely, the outside wall width could be hampered and not be as desireable a width)

3.  How much are you going to use that basement area?

4.  How much do you want to invest in adding height by digging deeper and/or adding depth to your exterior footings?

Running the numbers, it is cheaper just to tear down completely and rebuild. 

But, there is another option:

This particular home, it wasn't disclosed and the seller had hidden the fact that the center beam in the home was cracked, crooked and just needed to be replaced.  Wasn't easily seen as she had her clothes hanging on both sides and boxes stored in the center.

So, if you look carefully, you will see the old wood beam with steel posts supporting the main beam to the home.  But above that, if you look, there are new 2 x 12's laying on top of the basement wall vs being 12" lower.  Because the main beam had to be replaced, the owner decided more height to the basement, gave this basement a 8' 3" clearance - not 9' but it was a cheaper way to increase the height in this building's basement.

Just an idea that really worked well ....