Chicago, IL

Good Evening, Everyone!

If you live in a big city, or even a medium-sized town, this will be no shock at all to you -

In 2009, taxes, fees, and fares seem headed up across Chicago. Much of the increase seems driven by the fact the lagging economy has taken its toll on various tax revenues collected by the city.

Chicago Homeowners will be hit!

Last year's City of Chicago Budget included $86 Million in increased real estate taxes. These taxes will take effect for the 2008 tax year, not due until Fall, 2009. This year, many Chicago homeowners have suffered double-digit increases on their 2007 Property Tax Bills, due November 3rd, as these tax rates were calculated before the local real estate market started to weaken in late 2007.

Chicago Mayor Richard Daley plans no additional real estate tax increases in the 2009 City of Chicago Budget. You'll see, from the projected Budget Shortfall we will soon discuss, it may be difficult for him to keep his word.

CTA El and Bus Riders will feel the sting as well.

Last Friday, Chicago Transit Authority Chairman Ron Huberman announced fare increases affecting all passengers - those who pay cash, riders who purchase a monthly Unlimited Rides pass, and regular riders who hold a CTA Chicago Card or Chicago Card Plus fare debit card. The fare increase would take effect January, 2009, if approved.

Cash fares will increase to $2.25 for El and Bus Riders, slightly lower for those with transit debit cards. Further, the incentive bonus of 10% on those Chicago Card holders who place more than $20 in their fare account - a program geared to getting more riders to try the transit card option - is slated to be discontinued.

Despite a sales tax increased approved last March to fund CTA Service, a companion program to allow free rides for Senior Citizens and Disabled Veterans is costing more than anticipated - $35.8 Million, versus the original projection of $20 Million. Again, the recent economic downturn has resulted in lower sales tax proceeds to the CTA than anticipated. The fare increase, hopes Huberman, will close their budget gap.

Mayor Daley also proposes additional tax increases - on items such as concert and sports tickets and downtown parking, as well as Chicago Fire Department Ambulance Service.

These new proposals would cover roughly $65 Million of a projected $469 Million Budget Shortfall in Chicago over the next two years.

The remaining $404 Million City Budget Gap? The Mayor hopes to raise $150 Million by leasing Chicago Parking Meters, and another $40 Million from leasing Chicago Midway Airport, on the Southwest Side, to a private firm to operate.

Restructuring City of Chicago Debt would save an additional $60 Million. Also, using some of the proceeds from the Meter and Midway Airport Leasing Programs could save $13 Million, as city infrastructure improvements would come from these funds rather than the City Capital Budget.

The rest of the shortfall - another $141 Million? It's to be determined how that particular gap will be bridged.

The Mayor also proposes the layoff of as many as 1,080 city workers, and leaving 3,000 open city positions vacant instead of filling them.

See our post today @ BlogChicagoHomes.com for more info, as well as links to Hal Dardick's story in yesterday's Chicago Tribune discussing Mayor Daley's planned 2009 Chicago Budget. Also, Jon Hilkevitch's story in Friday's Tribune for more info on the contemplated CTA Fare Increase,

DEAN & DEAN'S TEAM CHICAGO

Hey Chicago, if you are late in your mortgage payments and you are receiving calls and notices from your lender or their representatives ..... THEN YOU NEED TO CREATE A MORTGAGE WORKOUT BOOK.

What's that? This is where you need to put everything that you receive, record every phone conversation with your lender's collection or loss mitigation department representative.

This is what you need to purchase:

• Three Ring Binder that is sturdy
• 8 Pocket dividers - Pockets are used to hold any paperwork that you receive
• Some plastic Sheet Protection Pages
• Notebook paper

Depending upon whether you have one or two lenders, make this notebook work for you.

How? When you get a call from a lender, then write the name of that person who called you and ask for them to repeat it twice so you have it, if they have an id# and put that down, their phone number, the date and time of the call and what the conversation was about.

You also want to write down what you are supposed to do or any "action" that was discussed during this phone conversation. Make sure that the "action" list can be from either the lender or you.

KEEP TRACK!

Take your papers and organize them according to lender and according to dates that you received them. Have all your insurance information in this book, along with leases (if you are an investment property), and property tax information. Water, gas and electric bills are critical as well.

When you receive a notice of collection - put it in your book of things to do.

If you don't have a calendar to keep track of your dates that you have commitments to financially or verbally, then go to Microsoft Office and download calendars that will work for you.

This is what you need to do in order to keep track of who has called you, who you need to call on what dates, etc. It's a way to help yourself and learn to fight to keep your property.

Need more ideas or help? Send me an email.

Hey Chicago, if you are a multi-unit building nad have been on the market or are considering going on the market soon, then pull out your leases and review them. Here's why:

The bank will base the value on the property off of these leases and the verbage that most Realtors put out there about "below market rents" just won't cut it with the lender. If you aren't at market rent and you have been giving your tenants a break in their rent for staying at the property for so long, that's great but it's not great to your property value. Your property value will be based off of the GRM (Gross Rent Multiplier) and the rents are what support that GRM.

Financing for your property, depending upon the price point, would be best to go under FHA financing. Why FHA? If you neighborhood has been experiencing a decline in value, like most, FHA would require a certain percentage down payment. With conventional financing, the lender will require 5% more down payment and it has been brought to my attention that PMI will no longer be available for investment properties. I would suggest you reach out to your banker or mortgage broker for the latest in guidelines.

And if you want to increase your rents, then increase your curb appeal. There is nothing like curb appeal and a property that has been maintained.

I do rentals in Chicago and I recently rented out two units for one of the neighbors in the Ravenswood GArdens/Albany Park borderline. He put roughly $800 in landscaping and because of that he got $300 more above the crrent market rent per month for the one unit and $150 more above the current market rent for the garden unit. That's $450 a month above the competition! In under two months, because this owner listened to me he netted $4,600 more in rent because of $800 in landscaping. Nice return on your investment, eh?

Morning from Chicago, folks!

Here's an update from the 32nd Annual Chicago Marathon, running today on a 26.2 Mile Course through 15 Chicago Neighborhoods!

Evans Cheruiyot, who made his marathon debut less than a year ago, made it six straight wins for Kenya in the Chicago Marathon Sunday. Breaking away from compatriot David Mandago in the 25th mile, Cheruiyot finished in 2 hours, 6 minutes, 25 seconds.

Cheruiyot, 26, now is 2-for-2 since moving up to the marathon a year ago. He won at Milan last December in 2:09.16.

Lidiya Grigoryeva of Russia, 34, the 2007 Boston Champion, took command of the women's race in the 21st mile and went on to win the Women's Title in 2:27.17.

This year's Chicago Marathon was being watched with concerned eyes when running began early this morning. Most remember the 2007 Marathon, when several people were hospitalized for dehydration and other heat-related ailments as the event continued in near 90-degree heat. Water stations ran out quickly, and the marathon had to be called after 3 1/2 hours.

For 2008, however, special care was taken to assure safety of the runners participating. Further, more moderate temperatures, 71 degrees at start time, and near 80 predicted in early afternoon, should reduce runner risk of heat exhaustion.

A new color-coded flag system will be in place warning runners of any potential danger caused by weather, or other hazardous situations. A yellow flag, in place at the beginning of the race, suggested caution. Should the race need to be called prematurely, a black flag will fly.

Marathon sponsor Bank of America, which absorbed long-time sponsor LaSalle Bank of Chicago earlier this year, has added five more runner's aid station to the 2008 Chicago Marathon, and has dramatically increased the supply of drinking water, and water-soaked sponges along the route.

See our post today at BlogChicagoHomes.com for mid-race coverage on today's Chicago Marathon. For ongoing updates, as well as a link to a route map and information about traffic re-routing today, click for Chicago Tribune Breaking News Coverage.

DEAN & DEAN'S TEAM CHICAGO

Hey Chicago, whether your home has been on the market or you are planning to sell this fall or winter season, here's some suggestions to help you sell your home before your neighbor does and for more money:

Curb Appeal: The weather is great right now so go out and rack your lawn. Sprinkle it with water first thing in the morning before you head out to work. Cut the lawn, one last time. Add some mums to your front yard "freshly trimmed" landscaping - not the small ones either. If your landscaping doesn't have any room, then put two at the front of your staircase or even maybe one at the bottom of the stairs and the other at the biggest section of your landing. It's a way of inviting the "eye" to look at your home.

Deck Area: Leave two lounge chairs out with a foot rest and again one or two colorful big $20 pot of mums on the deck. Lay a quality blanket over the arm rest of one of the chairs. What this does is gives the consumers the idea how great the back yard and/or deck area is for relaxing even during the fall.

Color: The fall is about color and bring it on! If your walls are somewhat dated, now is the time to add some zip and zing to those walls. I personally love Benjamin Moore Paint but also have found that Lowe's Paint is also extremely good quality and wears well. If you room needs some warmth, then add spice tones that naturally season rooms with warmth. If you have patterned accents either it be furniture or accessories, mix color with the pattern. It's a great way to pull the effect of "I just got to have this house". The fall colors I am seeing right now and find extremely appeal to the eye are Benjamin More Atrium White, Winter's Lake Blue and Davenport. Combine that with bright white trim and watch it "pop".

Chose at least three colors that work together and use them in different combinations. Play with lighter and darker versions of those colors to make it work for your house. Remember, you are not painting walls for your taste but to enhance the characters and quality, desireability of your house. That's the purpose.

Create a common thread using a single color on all trim to pull the whole project together. However, I have used a combination of using stained wood trim on walls that where wood will pull in the warmth as seen in this construction photo of a project that I designed at 5110 North Claremont. The staircase wall was all oak wood, doors were solid oak but yet I had an elegant french living room concept and so I installed painted 7 inch base moulding with 3/4" baseshoe and added painted crown moulding that pulled together the strength of the staircase wall and it's 6' long 4" stained moulding but yet created the elegance with the painted detailed base moulding in the living room and dining room areas.

This is just before the house was finished so the floors were not cleaned here.

NOW, if you have wood trim around your doors and base molding, let me show you the warmth that draws you into the kitchen and family room area.

Again, construction still going on. DID YOU KNOW .... that the kitchen is considered to be the strength and heartbeat of the home? Well it is so concentrate on your kitchen area first and then expand from there. Oh, by the way ..... that isn't a home that you are seeing in the back yard - it's the garage.

Why in blue blazes would I design a garage that looked like a house? Because there will be condominiums behind this property in the next five years and I wanted to (a) create some privacy for the new owner and (b) people tend too look at things that are "cute", "charming", "breathtaking" and will overlook a condominium building because of having a cute house garage in the backyard.

My disclaimer: I designed that garage for those reasons but also for the anquish that my father has had to go through the years because my mother never threw anything away and our basement was always full of "stuff". So, this garage has room for my Dad's things in the attic area.

I'm not telling you to tear down your garage and build a new one. When I sell properties I give the buyer's options of designs for garages and have them there and ask the family which one they like, on the count of three. Well, fingers are pointing at all different designs on my sheet of paper and my point is this, price the home for the cost of a new garage and let the new owner decide what he wants. You could put in a standard garage and that may kill the whole sale. The cost factor difference: "ZERO"!

Focus on adding new splashes of color into your home but keep it neutral. 17% of your selling price comes from your curb appeal. Start there and then work from the kitchen and then around to the other rooms. Organize your closets - Don't have them overstuffed with kids toys, shoes that you don't use any more or seasonal clothing.

Bathrooms - Get some expensive egyptian towels and have them displayed only for showings and open houses. Let the family use the regular towels.

Clear the clutter. Remove everything off the kitchen countertops - even that new mixer that you just bought! The more free you are of clutter, the more the consumer's mindset can be to free to put their personal touches in your home when they are visiting it.

Carpeting over Hardwood Floors: If you carpeting is worn out, dated or dirty and you have hardwood floors underneath - pull it out! The consumers are pushing for more of an environmentally, energy efficient home that is healthy. Carpeting is great for two reasons: (a) It retains the heat in the home and (b) it adds soundproofing.

What it boils down to, it doesn't matter who went on the market first, it's who gets sold first.