Archives

April 2008

What Are Americans Worried About?

Posted at 5:14 AM, Apr. 11, 2008

Inflation.  Without a doubt.  According to a recent survey, more than ninety percent of us are worried about it.  Jobs are shakey, homevalues are down, energy costs are up (way up!), gas prices that are enough to stun; it's no wonder consumer spending is at a concerning low.  Check out this and more on CNN.com.

A Perspective of the Mortgage Crisis

Posted at 5:01 AM, Apr. 9, 2008

When questioning how bad is the mortgage crisis and remembering that it's always darkest before dawn, below you will find the link to an article featured on CNN.com/Money of an interview with Princeton economist Paul Krugman who states that most homeowners can anticipate a 25% drop in homevalue when the dust finally settles.

Princeton economist Paul Krugman spoke with Fortune's Jia Lynn Yang about the impact on the economy, the outlook for home prices, and the reasons for both fear and hope.  Click here for the full interview.

As relevant and important it is to keep abreast of economic factors that impact our housing market, I will take this opportunity to remind Chicago homeowners, buyers and sellers, that every market is specific as is every property.  Be informed, not influenced.

Shopping For Doors

Posted at 5:26 AM, Apr. 7, 2008

If you are in the market of door-replacement (or addition for that matter), here is an article by Angie's List to aid the process.

Door to door

Doors are one of the few upgrades that will add a dramatic new look to both the interior and exterior of your home. Today’s doors are more energy efficient; carry better warranties and come in hundreds of styles. Whether it’s for looks or to increase energy savings, consider these tips when shopping for new doors.

Materials

• The front door is a great way to increase curb appeal, but don’t forget the back and interior doors.
• If your door is 15 years or older, chances are the weather stripping is worn out.
• Three options when it comes to exterior doors – fiberglass, wood and steel. All three can be painted, but only fiberglass and wood can be stained.
• New insulated fiberglass doors have very high U-values and are sealed much like a refrigerator door to dramatically reduce energy loss. More durable than wood and steel and require less maintenance.
• Durability is especially important for doors that aren’t shielded by a porch or overhang.
• Composite frames hold up better than wood and require less maintenance.
• Window installers tell us French doors have become more popular than sliding doors. This is due mostly to aesthetics, but French doors also offer more accessibility – you can open up both sides which makes moving furniture easier.

• Prices vary from $200 – several thousand depending on size, style and glass options. Steel is the cheapest, while fiberglass and wood are similar in pricing.
• Hardware also adds to the price and can range from $100 - $500.

• Choose a high-performance deadbolt lock that is durable and secure.
• According to the experts we spoke to, the door frame itself has historically been the weak link in terms of security. Ask about steel reinforced frames and plates behind the jams.
• Multi-point locks with rods that go into the header and sill and strike plate reinforcement can provide extra security.

• Every home is different, but, on average, you can reduce 80 percent to 90 percent of the energy loss by installing a new, energy efficient door.
• Virtually every door meets the minimum Energy Star requirements, but the amount of glass is the biggest determinant to how energy efficient the door is. It’s a trade off between energy efficiency and aesthetics. U-value for a door typically ranges from .15 (no glass) to .33 (full decorative glass).

• Most door installations can be done in one day or less.
• Hire a reputable installer. It’s critical that the door is hung and framed properly.
• Spring through summer and early fall is busy season for installers.

How Your Credit Rug is Being Shaken

Posted at 5:07 AM, Apr. 4, 2008

Lenders are turning towards other means to delve into consumer's history.  No longer are traditional methods the only means to assess credit risk for borrowers.  How you pay your rent and utilities will also impact your score, which up until recently, was only used as desperate measures for those with poor credit or lack-there-of.  Other scoring systems are being implemented along with well known FICO to establish a consumer's credit worthiness.

Breakdown of What the Big Guys Are Using

Make sure to keep all your bills current and paid on time.  Even forgetting to pay the cable bill on time can affect your ability to get the best interest rate whether buying a house or a car.  It can even determine whether or not your current credit card holders decide to raise your interest rate or reduce your spending limit.  Remember, your overall debt management can be used against you, even by an unrelated creditor.  Take heed.

Window Shopping 101

Posted at 5:56 AM, Apr. 2, 2008

Windows can account for 10 percent to 25 percent of your energy bill. If your house is among the nearly half of all U.S. homes with single-pane windows, consider replacing them with high-performance glass that will add a fresh look and decrease your energy costs. In addition, new windows can increase the safety of your home as older models can easily be forced open. Here are some tips on selecting the best windows for your home.

Materials

• When it comes to windows, price, aesthetic and level of maintenance will determine whether you choose vinyl, fiberglass or wood.
• If you want zero maintenance, go with vinyl. These windows come in a variety of color choices and wood grain laminates, are less expensive and once they’re installed, you’re done – no painting, staining or caulking is required. They also come with better warranties.
• If you want to customize the window trim with paint or stain, go with wood or fiberglass.
• Different window hardware (handles and locking mechanisms) are also available – so you can choose bright brass in one room and antique brass in another.
• As with any product, brand matters. Ask your installer which brand they recommend and why.

•  Vinyl starts at $400/window installed (double pane), while wood and fiberglass are nearly double that at $750/window. And keep in mind, once you have the wood or fiberglass window installed, you’ll still incur the cost of paint or stain.
• Double pane windows are the most popular, but triple-pane is also available. They cost about $50 more per window installed, but offer more energy savings, and if sound insulation is important, this is the way to go.

• Look for the Energy Star rating. It’s still the way to go, even though tax credits are no longer being offered.
• Windows typically range from a .28 - .35 U-value (there are windows that are .5); the lower the number the higher the energy efficiency.
• In colder climates, a U-value of 0.35 or below is recommended. In warm climates, look for windows with double glazing and spectrally selective coatings to reduce heat gain. In temperate climates, look for a low U-value and low solar heat gain co-efficiency (SHGC).
• Air leakage ratings of 0.3 cubic feet per minute or less are recommended.
• Double-pane windows with low-e coating (argon gas-filled panes and low emissivity) on the glass will reflect radiant heat back into the room during colder months.
• If you’re in an older home and don’t want to lose your leaded glass windows, consider adding a traditional storm window to the exterior for added energy savings.

• Reputation and experience is key when it comes to window installation. If installed incorrectly, windows will leak air and water can penetrate the seal leading to mold or wood rot.
• Homeowners are asking more and more for the window grids to be inside the pane because they’re easier to clean.
• Window installers can handle five to 10 windows per day on average so disruption can be kept to a minimum.
• The installation crew will need to come inside the home, so if you have valuable art on the walls or high-end furniture nearby, consider removing it yourself just in case.
• Busiest time of year for window installers is April – May and September – October.

Are We in an Unofficial Recession?

Posted at 1:22 PM, Apr. 1, 2008

three quarters of the US thinks it is.

http://money.cnn.com/galleries/2008/news/0803/gallery.economy_overview/