Smaller homes are quickly becoming today's trend. According to the U.S. Census Bureau, single-family homes in the U.S. are getting smaller and smaller. National Association of Home Builders also confirms that more Americans are in search of smaller square footage, energy efficiency, and manageable maintenance costs.

Many homeowners are downsizing these days for financial reasons and also find smaller homes to be a more efficient, simple way to live by giving up unused space and buying a home that fits their needs.

Here are some helpful tips if you are considering downsizing for financial reasons:

1. First consult with the bank that has your mortgage. See if you can adjust the payments or extend the loan years. Some banks even allow you to freeze the payments for a short period of time to let you build up savings.

2. If you are age 62 or older, see if you are eligible for a reverse mortgage. A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence or fail to meet the obligations of the mortgage.If you're not eligible, seek a companion in a similar situation and share your property with a reasonable rent.

3. Never withdraw from your retirement account to purchase a home. If you are employed and become unemployed, the loan becomes a permanent withdrawal. Depending on the circumstances, the tax consequences can reach 50% of the amount taken out of your 401k. Also, if you later lose the home and file for bankruptcy, the money is gone. However, if you leave the money in the 401k, it will be protected in bankruptcy because it is a retirement account.

4. Find a knowledgeable Realtor who can help you in your specific circumstance. When are seriously considering moving to a new home, do not hesitate to seek professional advice. Realtors will be able to help you find the best living situation that fits your needs and also discuss whether you should buy or sell first depending on the market and your neighborhood.

If you have any questions about downsizing, please feel free to contact me!

Realty Times Feature Article

Each time economic data is released or major events happen anywhere in the world, markets react in some sort of way. Lately, markets have been somewhat subdued as the reports have been mixed with both good and not so good data, although it has been positive for mortgage rates which keep going lower. Freerateupdate.com's daily survey of wholesale and direct lenders show that mortgage rates changed this past week for the better.

Conforming 30 year fixed mortgage rates started the week at 4.750%, dropped by .250% and now are at 4.500%. 15 year fixed mortgage rates also dropped by the same .250% and are at 3.750%. 5/1 adjustable mortgage rates are at 3.000%, a drop of .125%. These are the best mortgage rates available with 0.7 to 1% origination fee for well qualified borrowers. After remaining stable for some time, mortgage rates seem to be heading lower at what is usually one of the busiest seasons of the year.

FHA mortgage rates also repriced for the better. FHA 30 year fixed mortgage rates are at 4.250%, and FHA 15 year fixed mortgage rates are at 4.000%, both down .250%. FHA 5/1 adjustable mortgage rates are at 3.375%, down .275%. FHA mortgage loans offer a low down payment, but borrowers must be prepared to pay additional FHA fees and an upfront mortgage insurance premium which results in higher FHA closing costs (APR). FHA's recent increase in the annual mortgage insurance premium has resulted in a slow down of recent FHA mortgage applications.

Jumbo mortgage rates also did well this past week which should be a boost for high end home buyers. Jumbo 30 year fixed mortgage rates decreased by .250% and are at 5.125%. Jumbo 15 year fixed mortgage rates went from 5.000% in the early part of the week to 4.500% in the latter part of the week. Jumbo 5/1 adjustable mortgage rates are at 3.625% which is a decrease of .250%. With outstanding credit, borrowers can obtain these low jumbo mortgage rates with 0.7 to 1% origination fee. This week's economic data had mixed results on MBS prices (mortgage backed securities) as data continued to roll in. MBS prices affect mortgage rates which move in the opposite direction. While new home sales came in stronger, home prices continued to decline. Consumer sentiment increased and personal income rose at the same time that unemployment claims increased. With gas prices heading up, everyone will be watching to see what impact this is going to have on the already slow economic recovery.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.

Happy Spring!

With the sun warming up and the flowers blossoming day by day, we all participate in the spring cleaning of our homes. But why not take the spring cleaning a step further into our bodies? According to Chinese medicine, spring is the ideal time for a detox!

Here are some simple, excellent ways you can revive your body through a spring detox.

- Drink lots of water. Set a goal and remind yourself to drink at least 8 cups of water a day. Water is the ultimate detox food, and this is the cheapest, easiest way to help your body detox.

- Go vegetarian for a week. If you look through your grocery store, you might find ready-to-eat veggie platters. I've always felt that this is a great way to eat more vegetables without the hassle. Instead of chicken caesar salad, try the tofu salad. More and more restaurants these days have a selection of vegetarian entrees, so feel free to browse those!

- Avoid fatty foods. Look through your cupboards now and see if there are any items with lots of trans fats and saturated fats. Throw out anything that is unhealthy -- and while you're at it, remove anything that's after the expiration date!

- Start the mornings with a homemade smoothie. You'd be amazed at how simple it is to make a healthy, delicious smoothie. Grab some fresh strawberries, bananas, and put them into a blender along with soymilk. You can adjust the amounts of each to create a smoothie that's just perfect for you! If you're feeling extra creative, why not toss in some spinach and wheat grass?

- Incorporate more onions, garlic, sprouts, asparagus, and arugula into your diet! These foods are particularly known for their detoxifying qualities. Whether raw or cooked, look for ways you can add them into your lunch or dinner!

If you would like to find more healthy recipes, I highly recommend the recipes of Dr. John La Puma. Enjoy!

Updating a bathroom is a great way to increase a home’s resale and the fixes are not too costly or labor intensive.

1. Beautify: Add decorative glass, stone tile or accents. Extra-wide wall tiles are popular and wood cabinets can be embellished with carved wooden inlays.
2. Lighting: Add more lighting options around the room to reduce shadows and glare. Mood lighting around the tub area is also very popular.
3. Bath/Shower: A new tub, a messaging showerhead and a spa-like atmosphere can do wonders.
4. Update Fixtures: Fixtures in a bathroom can add a great deal. From cabinet handles to faucets. Brushed nickel or other metals is a good idea. If space permits, add a second sink.
5. Think Green: Install fixtures that save water. A low-flow showerhead, low-flow faucet aerator and a dual-flush toilet can save thousands of gallons of water. Energy-efficient windows is another easy option.

Of course it is tempting: an enormous 5 bed, 6 bath home of over 5,000 square feet in Northbrook for only $550,000? However, home buyers have to be very careful when purchasing in a short sale or foreclosure situation.

When you walk into a foreclosure, it is often a huge mess. People are angry and frustrated (rightfully so) when they have to leave their houses, and many of them do things that destroy the house.

Short sales will always attract buyers on the financial aspects, but oftentimes they end up being hassles because of all the paperwork required by the banks.

Other negative factors of buying in a short sale or foreclosure include:

- unplanned expenses before buying (repairs, inspections, certifications);
- uncertain and long wait time;
- homeowner is usually not cooperative;
- last-minute changes made by lenders;
- homeowner can file for bankruptcy and foreclosure process needs approval from the bankruptcy attorney;

If you have any questions regarding short sales and foreclosures, please feel free to contact Marlene.

* Marlene was quoted on "Make it Better," Chicago North Shore's premier online resource and magazine! Click here to see the article.

Whether you need to furnish an entire home or buy a new piece or two, furniture shopping is not an easy task. First, you have the question of price range, then style and then fit. There is a lot to think about. 

In terms of affordability and modern style, IKEA is always a great choice. But if you're looking for something more unique, make sure to check out some of the following furniture stores unique to Chicago North Shore:

• 57th Street Bookcases & Cabinet, Evanston: 604 Davis St, Evanston. Custom bookcases and full range of ready-made hardwood cases and furniture. Called "a hidden treasure of Chicago" by the Chicago Magazine.


• North Shore Bedding, Highland Park: 1374 Old Skokie Road, Highland Park. Easy shopping with an experienced sales staff and low pressure environment. Great selection of all natural and organic mattresses.


• Toms-Price, Lincolnshire: 725 Milwaukee Ave, Lincolnshire (also in Skokie and Wheaton). Wide collection of sofas, dining furniture, bedroom furniture, home office furniture as well as accent pieces.

• Garden House of Casual Furniture, Wilmette: 521 Green Bay, Wilmette. Outdoor furniture, sunroom furniture, and casual dining.

• Sawbridge Studios, Winnetka: 897 1/2 Green Bay Rd, Winnetka. Fine, handcrafted home furnishings with exquisite craftmanship at realistic prices.

Have a favorite furniture store in your neighborhood? Feel free to share and leave comments!

During the sweltering summer heat, keeping cool on the inside and out is very important. Make these yummy summer treats to stay cool:

1. Frozen fruit: Watermelon, blueberries, strawberries...you name it!
2. Yogurt cups: Fill a small dole paper cup with your favorite yogurt and fruit, stick a Popsicle stick in, freeze and enjoy.
3. Iced Tea: Great way to stay hydrated. Make the tea with your tea of choice. Consider sweet flavors, such as hibiscus. Pour hot tea in jug with tea bags and add cool water 10 minutes later. Add some juice and Stevia to sweeten it up.
4. Iced Teacicles: Freeze the above tea in a Dole cup with Popsicle stick.

Please feel free to contact me for more information on how you can take advantage of this extended tax credit!

(Image by First Sterling Mortgage Services, LLC)

To provide extended relief for the U.S. housing market, President Obama signed into law a new legislation this month that allows first-time homebuyers to receive the $8,000 credit until April 30, 2010. The credit was due to expire on December 1, 2009.

Buyers also have an additional 60 days to close after April 30, 2010, meaning: if a homebuyer enters into a contract to buy a home on April 1, 2010, then they have until June 1, 2010 to close on the purchase and are still able to claim the $8,000 credit.

The legislation also provides a new credit for homeowners who purchase a larger residence between November 7, 2009 and April 30, 2010. Up to $6,500 in credit will be available to new buyers who have lived in their residence for at least five consecutive years during the eight-year period before the purchase of the new residence.

For more information, please click here.

Until October 19, 2009, the Kohl Children's Museum in Glenview is hosting a fabulous exhibit called Watch Us Grow: Monarch Butterflies.

Perfect for children and adults, the Monarch butterflies exhibit shows the lifecycle of these delicate creatures in all four stages: eggs, caterpillars, pupas, and adult butterflies. The transformation of a tiny white 1-millimeter egg to the bright orange and black-veined beauty is a rare, one-of-a-kind experience that is often missed in visits to the various Monarch butterfly santuaries throughout the country.

I recently saw a documentary about these butterflies and was truly awed to discover that they migrate both north and south as birds do, traveling from Washington D.C. to Angangueo, Mexico. That's nearly 1,900 miles! Scientists have yet to discover how these butterflies navigate themselves.

Monarch butterflies are also known to be the only butterflies that make transatlantic journeys, as some have been found on islands and oil rigs in the middle of the ocean. The fragility of their exotic wings beating against the rough winds is truly amazing to think about!

Don't miss this wonderful exhibit! Look for other exhibits perfect for the family on Kohl Children's Museum website.

The warm rays of the sun, the earthy smell of the vineyard, the cold wine glass in your hand as you walk through the beautiful winery ... could it be that you've been transported to Napa Valley? Fortunately, Chicago North Shore residents can forego the 4.5 hour plane ride and head to Evanston for a truly remarkable wine tasting experience.

Now We're Cookin' has planned an evening dedicated to wining this upcoming Friday, September 18th from 7pm to 9pm. Their event is titled "Food-Friendly Wines at Budget-Friendly Prices" where all bottles are less than $15 each. In addition to tasting various wines of high quality, guests to the event will also be able to sample foods that create the perfect match to the taste palette.

This would be a great opportunity to find the bottle that could become your favorite house wine. In addition to enjoying it with your family, it's always a lovely gesture for a friend, relative, or co-worker to receive as a gift a bottle that you highly recommend!

Now We're Cookin' also has other fabulous events for those who enjoy great cooking. Make sure to look at their website's calendar for demonstrations at the Evanston Farmers Market, hands-on cooking seminars, and future wine tasting events.

For more information and ticket prices, please visit the Now We're Cookin' website at http://www.nwcookin.com/.

Bon appetit!

First off, here is a chart for the average selling price of single family homes in the North Shore from January 2005 to July 2009. Overall, we see that closing prices have decreased steadily since 2007. Among these homes, 3-bedroom homes have been hit the hardest in terms of price decrease and is going at $363,645 average selling price, whereas luxury homes (5 bedrooms or more) have held up the steadiest price throughout the years and are going for $1,274,230 average selling price.

The graph below shows the trend of average selling price to listing price ratio from January 2005 to July 2009. Sellers are getting less than what they expect, but as long as they are working with a realtor who continually helps them come up with a strategic price, most sellers will on average get at least 90% of their asking price. So the market may be performing less vigorously than previous years, but it is still capable of a satisfactory return.

Here are some key things to remember. Even though you might hear reports about home markets picking up, there is still a huge amount of inventory of homes in the North Shore. Due to abundance of homes, prices are still going down on a monthly basis. It's the old story of supply and demand.

For a buyer to purchase a home, a seller needs to have a house that is 1) the winner of a beauty contest and 2) the lowest priced home in the area.

If there is more specific information you would like about your home or your area, or if you have any friends and neighbors who are unsure of their positioning in the market, I'm never too busy for any of your referrals.

This is a spectacular event you don't want to miss--if you haven't attended one yet, don't miss out on this year's show! The Chicago Air & Water Show will be celebrating its 51st anniversary this August, and it's the oldest and largest free admission aviation event in the country.

It started in 1958 with the goal of creating a show that would bring great entertainment for both parents and children in order to celebrate "Family Day." Apparently the first show had a budget of $88 and featured air rescue demonstrations and water skiers! Lucky for us, the event has grown larger ever since, and with increasing corporate sponsorship, it has become one of the largest spectacular events in the world.

Many top names in aviation have gathered for a breathtaking show throughout the years, and this year, we'll have the opportunity to see a great performance by the U.S. Air Force Thunderbirds and the U.S. Army Golden Knights.

This year's Chicago Air & Water Show will be held on Saturday, August 15th and Sunday, August 16th at North Avenue Beach. Admission is free! For more details, click here.

Of course, Ravinia is no secret for our music lovers in Chicago North Shore. When summer makes its way here, it's accompanied by the world's best music! The experience of sitting down in your favorite lawn spot, listening to Tchaikovsky, Gershwin or John Legend, and gazing up at the stars is truly a bliss.

This summer, Ravinia will be hosting "An Evening with Diana Krall" on Saturday, June 27. Diana is a Grammy Award-winning jazz pianist and singer with a deep, whispery voice that's alluring and perfect for a quiet evening.

Through July and August, there will be impressive performances by Lang-Lang and Yo-Yo Ma. For Ravinia's event calendar, please visit: http://www.ravinia.org/Calendar.aspx.

This boutique is an absolute gem. It's my favorite! Everywhere you look, you'll spot gorgeous clothing, jewelry and home accoutrements.

Rachel, the owner of Stella, looks for unusual items that have a one-of-a-kind feel and looks for items that are well-priced. She is attracted to items that have a whimsical or exotic look. 

The boutique is jampacked with treasures offering special gifts, interesting clothing and artisan jewlery and handbags. A real Bohemian feeling in the North Shore Suburbs.

Just give it a try. Tell Rachel that Marlene sent you!  Her store address is 2116 Central Street in Evanston and hours are Mon-Friday 10-6, Sat, 10-5 and Sundays 12-5. You won’t be disappointed!

Visit Stella's website: www.stellaevanston.com.

Want to know where the best hamburgers in North Shore are? If you want the best with proven record of having been the locals' favorite for years and years, make sure you go to Beinlich's or also known as Charlie Beinlich's Food and Tap, located on 290 Skokie Road in Northbrook.

The lines are always out the door and the restaurant is small. There are no tablecloths and the ambiance is classic and very lodge-like, but it has the BEST of foods, including gigantic shrimp cocktails, absolutely delicious hamburgers of every kind made to order.

There's no menu at Beinlich's except for the type set sign on the wall. The bar is constantly full and it's a "eat up, get up and get out" kind of place. When you look around, you'll notice why it's best not to linger because of all the people waiting.

Keep in mind, it's a MUST if you live in the North Shore of Chicago! It's also a great place to take your visiting friends and relatives for the real taste of Chicago all year-round.

What's your favorite item at Beinlich's? Feel free to share by leaving a comment!

It's a lovely Sunday afternoon and you decide to get some fresh air. As you're taking a stroll through your neighborhood, you admire houses with beautiful green lawns. It's just the right color--that deep, rich green and you would love to have that same color brushed across your lawn. It's time to send away those dry yellow patches.

The tips I want to give to you are how to best maintain the lawn that you currently have. "Lawn experts" will start from the type of grass, your area's climate, moisture level, analysis of the traffic over the lawn, etc, but honestly, not many of us have time to replace our entire lawn with a new type of grass, am I right?

I know many friends who struggle through the ups and downs of keeping a lush, green front lawn. So how can you save money without losing out on quality and beauty with the lawn you currently have? Below are some tips that I have learned through years of experience and researching.

• Reseeding: Reseeding is the easiest and least expensive way to revitalize your lawn. If your lawn has at least 50% healthy grass, then you could reap benefits from reseeding the troublesome spots.  By reseeding your lawn with a variety that is new and improved, you'll see thicker, greener grass. The best time to do this usually fall or spring; fall is preferred because it provides a better climate for the grass to grow. For step by step instructions, please visit here: Reseeding Your Lawn.

• Patching: If your lawn is generally healthy, but it suffers from bare spots or weedy patches, then all you have to do is patch the problem spots. This process will only take about 3-4 weeks and is like a small-scale version of reseeding. The most important thing is to discover why the bare spot appeared. Determine whether it's from over-fertilization, lack of water, insects, etc, in order to prevent the problem from happening again. For a great video that shows how to do patching, see this: Patching Video.

• Composting: This is a crucial step required to maintain a healthy lawn. Composting is recommended 2 to 3 times a year. As composting is an organic, safe method of fertilizing your lawn without harsh chemicals, it's a step you don't want to skip! For instructions and photos, visit here: Composting Instructions.

Hope you find this useful. Happy Spring!

As you start to hear more news about President Obama's Making Home Affordable Plan, you'll be wondering whether you qualify as a homeowner. Below is some of the key information to consider.

1. Who is the Making Home Affordable plan designed to help?

The Plan is designed to help families who've been affected by the sudden drop in housing prices. The Plan will give families access to low-cost refinancing or loan modification for lower monthly mortgages to slow the wave of foreclosures.

The Plan is restricted to owners of primary residences who are looking in good faith to restructure their mortgage payments. The Plan does not bail out speculators or house flippers.

2. Do I qualify?

Due to the Plan's complexity, the US Department of Treasury and Department of Housing and Urban Development launched the following website, which includes interactive self-assessment tools to determine if you qualify: www.MakingHomeAffordable.gov.

If you have any specific questions regarding your situation, please feel free to email me.

Home warranties are designed to insure the home against mechanical failures in plumbing, heating, electrical, and installed appliances.

How do they work? For an annual fee anywhere between $250 to $600, the warranty company hires local repair companies to provide service in case of mechanical failure when contacted by the homeowner. If the mechanical breakdown is covered in the warranty contract, then the homeowner pays a fee for the service visit, around $25-$75. 

There are several important points to remember when choosing a home warranty:

1. Carefully read the service agreement to be clear on what is and is not covered. Some contracts could intentionally have loopholes. 
2. Research the customer service track record of the company by looking on the internet for any customer reviews.
3. Check that the company has a solid financial history. How long has it been in business? How has it been performing for the past several years?

For more information on how to choose the right home warranty, I recommend this article from MSN Money.