Going green is a noble endeavor in today’s society, but isn’t always manageable in today’s economy. There are, however, many ways to compromise in the middle of the eco-financial landscape. And if you’re renovating or selling your home – even if you’re a first-time homebuyer looking to make a difference. Consider these ways to “Go Green on a Budget.”

Paint the interior of your home yourself
Most paint contains a VOC solvent (volatile organic compound) which contributes to the formation of smog. Using a low-VOC or no-VOC paint can be more expensive, but you can save 75% on house-painting costs by doing it yourself.

Install a programmable thermostat
Today’s buyers are looking for every possible amenity - and, ultimately, signs that they’ll save money the moment they move in. Programmable thermostats were designed to save you and your potential buyer money.

Obtain Chicago rain barrels
The City of Chicago supplies plastic rain barrels to collect runoff for flood prevention and landscaping irrigation. For more information, visit www.cityofchicago.org.

Use a compost pile to create soil
Here’s how: Find a corner in your yard and carefully dispose of leftover food, eggshells, coffee grounds, spoiled vegetables, etc. and mix with dirt. Each week, turn the pile with a shovel for aeration. In a few weeks time, the pile will transform into a nutrient-rich soil. And because of the rising popularity of compost piles, potential buyers may see this feature as a beneficial attention to detail and care for your surroundings.

Plant a tree
Nothing symbolizes a bright new phase of your home’s life to a potential buyer than a brand new tree. Visit your local nursery and learn what kinds of trees grow best in your area.

Use energy-efficient light bulbs
Save energy: replace all standard bulbs with compact fluorescent bulbs for more light and less money.

BYOB
Keep canvas tote bags readily available in your car for grocery shopping trips. You’ll save the planet and space under the sink!

For more information on recycling in the Chicagoland area, the Chicago Recycling Coalition offers additional tips at:

www.chicagorecycling.org

With the New Year now underway, it’s time to consider the advantages of selling your home during a typical “slow period” in the real estate market.

Marketing Exposure
By selling your home in the winter, you gain an advantage through a heightened amount of marketing and advertising exposure. Because you’re not swimming against the wave of new listings in the spring, your property gains more individual attention.

Less Competition
Potential buyers have fewer physical options in your neighborhood. This gives you extra leverage and selling power.

Buy-Down Benefits
During slower periods in the market,sellers typically entice buyers to make purchases with “buy-downs” instead of lowering the final purchase price. (See our Buy-Down article for more details.)

The Holiday Recovery
We all take time after the holidays to recover from our financial good will. This can translate to an overall perception within our conventional wisdom that “buyer’s don’t want to purchase a home in the winter.” Not true. People buy new homes in Chicagoland every day.

Retail Sales & Promotions
Are you thinking of repainting your home? Do you need to install a new screen door before your potential buyer arrives? The off-season is a great time to purchase paint, construction materials, and other home improvement supplies.

Winter brings more than snowtires and skiing the slopes. Call PERL Mortgage today for a free credit check, pre-approval and more shopping strategies!

© Copyright 2008 PERL Mortgage, Inc.

Appraisals can come in lower than the sales price because appraisals are based on recently recorded sales and not the most current up-to-date market value. Following are a few other factors that can challenge appraisers when assessing your property.

Unique Homes
When your home is an original design or has very tailored features, it’s often difficult for appraisers to find comparable properties in the neighborhood. Appraisers use these “comps” to give an estimated value of your home. If your apple is surrounded by oranges, you may have to work with your realtor to compile your own list of comparable homes. You may need to include homes from other neighborhoods in order to show a more accurate value.

Public Record
In a perfect world, homes would sell and quickly become public record. In a busy season, it can take up to three months for home sales to be recorded. Prior to recording, appraisers can’t use these sales as part of an assessment. This may lead to a lower-than-expected assessment of the property you are buying or selling.

Upgrades
Although adding features to your home improves its value, the return made through the sale varies. For instance, replacing windows returns 55%, while adding a bathroom gives back as much as 96%. The best investment by far is paint – just by sprucing up your walls, you can expect a 200% return on your labor and supplies.

Overestimation of value
The last few years have been great for the housing market. Interest rates are low and prices have soared. However, the market is slowing down and sellers can’t expect the same rate of appreciation. It’s best to work closely with your realtor to decide on the ideal sales price.

© 2006 PERL Mortgage Inc.

If you’re thinking about selling this spring, here are a few pointers to help you on your way.

Prepare yourself: Detach yourself emotionally from your home and start viewing it as a commodity you want to sell. Be completely candid with yourself about how your home should look when it goes on the market.

Prepare your home: Property appearance and condition play a key role; buyers pay a premium for homes that are move-in ready. Make sure to remove all clutter. Pack up unnecessary items and store them to give your buyers the best view of your home.

Determine your selling price: Price depends on various factors, including how many buyers there are in the market looking for homes like yours, how many other homes like yours are currently on the market, and the condition of your home relative to your competition.

Hire a professional: While many people like to try to sell their homes on their own, real estate agents are experts when it comes to knowing what fix-up projects will be necessary and most lucrative for your sale. Ideally, you should talk to an agent months before your anticipated sale. Walk through your home with your agent and compile a “to-do” list.

Make minor improvements: Consider a home equity line of credit to give you the extra money needed for decorating and minor home improvements. This is a great short-term flexible solution because you will only pay interest on the portion of the line you access.

Finance your major improvements: Take out a construction loan to finance a new addition or a rehab project. Unlike an equity line, you can access funds based on your home’s post-construction appraised value.

Save money: Depending on the size of your loan and the time you plan on owning your property, you may be able to save money by changing your fixed rate mortgage to a short-term adjustable. Call Perl Mortgage to see which solution is best for you.

© 2006 PERL Mortgage Inc.