Great article on looking for that...Silver lining! Stressing the positive in selling a home..

After languishing one year and one week on the lousiest real estate market since Fred and Wilma bought their little stone cottage, my house is finally being sold.
"Congratulations!" people are saying. So why am I not doing cartwheels and popping champagne as I imagined I would? Could it be because, after months and months of showings and price reductions and raised and crushed hopes, I am selling my house for 33 percent less than I paid for it in 2005? Maybe that's it!
Please forgive the ugly sarcasm. I can't really help it; it's just a pathetic aftereffect of what I have come to recognize as home seller's fatigue. This is a condition in which prolonged exposure to spray cleaner and the continual threat of strangers appearing at the door make a person (to use the clinical term) a little wacko.
If you've had a home on the market for a while, HSF can sneak up on you. But I'm here to help you recognize the problem. Are you experiencing symptoms like these?
•You have a constant unsettled feeling reinforced daily by the sight of the sign in your front yard, swinging in the wind and, you would swear some days, laughing.

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•You have developed paranoia because during various open houses people swiped your prescription drugs and went through your drawers. Not only do you no longer have open houses, but you jump whenever your husband touches you.
•You avoid your neighbors because you are embarrassed that you can't sell your house. Plus, for all you know, they came to your open houses and went through your drawers.
•You make the place all pretty, and the prospects come and go, and do they call again? No. And yet despite this rejection you want them to come back, and this makes you feel bad about yourself. That's right, it's exactly like dating.
•Your agent gets an email from some guy who says he's in Japan but he saw the house listing online and wants to buy it sight unseen at your full asking price. And you actually think about it. (This really happened.)
•You grow to hate every prospective buyer, and you hate them even more after they make an offer, because your house deserves more. You turn around and hate your house for not growing another bedroom. You hate your agent for not waving a wand and making more offers appear. You hate yourself for buying when the market was at its peak, even though you got top dollar for your old house. You pretty much hate everybody and everything.
Impaired judgment, paranoia, anti-social disorder, burying statues of saints in the yard — can't something be done?
Joan Gale Frank has some ideas. Frank is a survivor of that crucible of modern real estate, Arizona, where she and her husband spent about a year selling their house. She wrote a book about the mental strain, "Home Seller's Blues and How to Beat Them."
Frank's overall message is to find the silver lining. She reminds us that while we're constantly cleaning, we can enjoy living in our house at its best. We get a head start on packing when we get rid of the clutter. We are more mentally prepared to move. We are forced to live in the moment. We have an excuse to eat out so we can keep the kitchen clean.
I view these as useful treatments for early, minor cases of HSF. But those of us who have endured the real estate equivalent of the siege of Stalingrad might need more. Like a voodoo doll or an extra large bottle of scotch.
Obviously, one of my coping skills is a sense of humor. But I don't want anyone to think that I am belittling the devastating impact that losing a home has on a family. My husband and I actually are selling two houses, having married recently (well, not so recently now!), and trying to buy a third one. We are fortunate that we are not underwater or at risk of foreclosure. My heart goes out to those families who are. But if we were, I would be trying mighty hard to find something to laugh about.
Keeping a journal is another of Frank's suggestions, and if you're the type, it's good catharsis. Certainly, if I'd had any inkling it would take a year to sell my house, I would have started a blog and maybe had a book deal by now.
If writing isn't your thing, I suggest some other kind of healthy catharsis. Talk to a good friend, a therapist or, if you're lucky like me, your understanding partner in this nightmare, your spouse. Exercise regularly; you might try bowling. Pretend each pin is one of those prospects who said your kitchen was too small: "That's reflected (release, roll) in the (crash!) asking price!"
Frank says, and I agree, that it also helps to remember the big picture: why you're selling in the first place. I tried to envision us actually living as a family in a home we found together. Other times I chucked the optimism and reminded myself: This is a rotten time in your life. This is not supposed to feel good. So embrace the misery once in a while. And get back to cleaning, you've got a showing in an hour.
There are many treatments for HSF, but only one cure: selling the house. Trouble is, now that our family has unloaded my place, we've fallen prey to a new ailment: insufferably demanding homebuyer's syndrome.

Eisenhowers.. Baby Boomers. Step aside..The millenials. Next wave of homebuyers?

Wells Fargo study finds new kind of homebuyer on the way: Millennials

The still struggling housing industry might actually be scraping the surface of the largest home-buying opportunity in generations: the Millennials.
According to a study from Wells Fargo (WFC: 32.0017 +1.46%), there are 51.5 million potential first-time homebuyers born between 1979 and 1991. Roughly 6 million more of these Millennials are reaching the prime homebuying age than baby boomers did in 1977.
Often characterized as hoodie-wearing college kids strapped to iPods and iPhones, this generation is the most diverse, more technology driven and actually more inclined to trust institutions than their predecessors, the Gen Xers and baby boomers, according to a Pew Research Center study.
In fact, when Wells surveyed more than 3,000 Americans, it found attitudes toward homeownership are still optimistic, especially in this younger crowd.
For the last three years, the mortgage industry has been mired in problems throughout the process. Poorly written loans taken out by homebuyers who could not afford them on the origination side drove foreclosure levels to new heights, overwhelming servicers, who quickly found themselves embroiled in investigations and new stricter regulations.
The result has been a growing shadow inventory of foreclosed homes needing to be sold, reaching as high as a 10-year supply in New York, according to Standard & Poor's. Meanwhile, home sales plummeted as recently as February to its lowest rate since the Commerce Department began measuring the statistic.
Between 1980 and 2000, membership at the National Association of Realtors hovered around 750,000. But by 2006, that number grew to 1.36 million. Since the collapse, membership fell to about 1 million, according to NAR.
Of the Realtors still in the business, 40% reported gross income of less than $25,000 in 2010.
The upcoming qualified residential mortgage could dry up home sales even more. The QRM rule could force lenders to retain 5% of the risk after securitization on any loan written without 20% down. What the rule will definitively say is still speculation at this point. In a letter written to regulators, NAR and the National Association of Homebuilders said it would take a family earning a median income 14 years to save the 20% necessary for the down payment on a new home.
Despite all these setbacks, homeownership is still a destination. More than 70% of those surveyed by Wells Fargo still want to own a home. Millennials even responded to more rigorous credit requirements favorably, describing them as beneficial to their goal of remaining in the home once they make the purchase.
Roughly 26,000 real estate agents attended a Wells Fargo presentation Thursday shown in 100 theaters nationwide. Brad Blackwell, executive vice president at Wells Fargo told the audience this wave of Millennials will be the new lifeblood for the industry.
"We're going to have to figure out how to reach them," Blackwell said.
Lisa Zakrajsek, another EVP at Wells and the leader on the study, told HousingWire after the presentation the bank will begin putting together homebuying workshops aimed at the younger crowd this year. The banking giant also plans to make changes to its website for this more tech-savvy generation.
"We've invested hugely in this infrastructure," Zakrajsek said. "We're making great enhancements to meet the needs of younger buyers."

Buying a home/investment property.. 5 quick tips for improving your credit score

It is not easy to increase your credit score but a good rating is essential for a number of life choices including buying and obtaining a mortgage. Although not an easy process, the logic behind increasing your credit rating is quite simple. Make sure that you pay your bills in a timely fashion, reduce debts, and eliminate inaccuracies which would negatively affect your report.
The following are a series of 5 tips that will help you to improve your credit score.

Correct Inaccuracies

All credit bureaus need to correct any errors in the reports. Because the credit score is linked to the credit report, it is essential to review the report from all different credit bureaus in order to ensure accuracy before applying for a mortgage or another form of loan.
If you find a mistake in the report, contact the bureau in order to explain what is wrong with the information. It can take up to and occasionally over 30 days to correct the mistake so plan well in advance.

Pay the Bills in a Timely Manner

The most important feature that determines the credit score is payment history. It consists of 35% of the score. Recent history is considered first so making all payments in a timely manner is an excellent way to improve the credit score. One payment being missed can decrease the score by as much as 50 or 100 points. Additionally, open credit accounts that have been unresolved can hurt the credit score. It is essential to settle these accounts and close credit accounts that are not being used.

Reduce Credit Balances and Adjust Limits

Make sure that the balance on the credit card stays within 20% and 50% of the total limit. For the most part, the lower the balance, the higher the score. Lenders want to see that that there is a significant amount of room between the debt amount and the total limit.
Because of this, it is not beneficial to consolidate balances and raise the ratio of the balance to the limit. It is far better to have lower balances on different cards than a higher balance on only one card. In order to lower your overall balance ratio, increase your credit limit. But make sure that you do not take advantage of this money and spend it.

Credit Counseling

You should consider working with an agency in order to obtain a debt repayment plan, particularly if you find that you are suffering with high-interest debt and may fall behind in payments. These services may be able to negotiate a lower rate and pay off the bills within only a couple of years.

Avoid Bankruptcy at all Costs

Bankruptcy is highly detrimental to your credit score. If an individual has good credit but undergoes bankruptcy, it is possible for a person to lose over 200 points. It is quite difficult to recover from bankruptcy. After a score has decreased to less than 620, it is far less likely that a mortgage or loan will be able to be obtained.

For more info on a mortgage professional to speak to or to purchase residential or commercial real estate. Call Ron@ any of the multiple forms of communication below..

Ron Goldstein, MBA
Transnational Referral Certified(TRC)
Quality Service Certified(QSC)
Broker Associate
Prudential RUBLOFF Real Estate
cell (312)771-7190
office(312)264-5846
rdgrdg@gmail.com
rgoldstein@rubloff.com
Carpe Diem.Today is your day!...
Certified Eco-Broker
www.chicagoluxuryrealty.com
Check out my blog@
http://www.carpediemrealestate.blogspot.com

Point of maximum risk in investment vs. Point of maximum opportunity. Whats your perception?

If Your Goal Is to Buy Low, Buy Now!

There is a very famous saying which asserts “Sell High, Buy Low”. It is obviously great advice no matter what the investment. Below is a graph showing the cycle of investments. It shows the points of maximum risk and maximum opportunity when purchasing. We want to sell high (point of maximum risk) and buy low (point of maximum opportunity).

The challenge is how to determine when we have hit bottom if you are a purchaser. The only time you can guarantee a bottom is after you pass it.

However, there is more and more evidence that the COST of a home has in fact hit bottom. Notice we have used the word COST. Unless you are an all cash buyer, you must take into consideration the expense of financing a property to determine the true cost of purchasing the home. Interest rates have increased over the last quarter; and the rise in rates has counteracted any fall in prices.

Let’s look at an example:

Let’s say you were going to take out a $200,000 30-year-fixed-rate mortgage in November of 2010. At that time, interest rates were 4.17% (as per Freddie Mac). Your principle and interest payment would have come to $974.54. According to the most recent report from Case Shiller house prices fell 3.9% in the 4th quarter of 2010. The most recent report from the Federal Housing Finance Agency shows a 0.8% fall in prices. Let’s use the larger percentage decrease: 3.9%.

For the sake of keeping the math simple, we will now say you can get the same house with a $192,000 mortgage (4% discount from November price). Interest rates are now 4.95% (as per Freddie Mac).

Your principle and interest payment would now be $1,067.54.

By waiting to pay less for the PRICE of the house, the COST increased $93 a month. That adds up to $1,116 a year and over $33,000 over the life of the loan.

We realize that there are other things to consider (ex. the mortgage tax deduction, etc.). This example is just a simple way to show that there is a difference between COST and PRICE.

Bottom Line

If you want to buy low, buy now. It appears COST has hit its lowest point.

Email rgoldstein@rubloff.com for more info. on wealth mngmt. and to buy/sell your residential/commercial properties.

Americans Confident in Recovery of Real Estate Market

 

 

Americans Confident in Recovery of Real Estate Market

RISMEDIA, March 14, 2011—The majority of America’s potential homebuyers and sellers—68 percent—believe that the real estate market and property values will recover in the next year or two, according to a survey released recently by Prudential Real Estate and Relocation Services, Inc., a Prudential Financial, Inc. [NYSE:PRU] company.
This exceeds the 47 percent of Americans who expected house prices would rise in a similar survey conducted in April 2010, underscoring a more bullish outlook for the real estate market today.
In addition, 86 percent of Americans believe real estate is a good investment despite the market volatility of the past few years. The Prudential Real Estate Outlook Survey of 1,253 Americans between the ages of 25-64 in the market for buying a home was conducted Jan. 20-27, 2011.
The survey reveals that six in 10 respondents are more interested in buying real estate (58%) and are optimistic about buying given the momentum of the economic recovery (59%). It also shows that although the price of many Americans’ homes declined during the recession, 89 percent recognize they can also buy a new house at a lower price.
“This survey clearly demonstrates that Americans continue to be optimistic about the real estate market and believe that home prices will rise,” said James Mallozzi, chief executive officer of Prudential Real Estate and Relocation Services, Inc. “A key take away from the survey is although consumers recognize that it is a good time to buy, they are concerned about their ability to sell their homes. This is one of the reasons the market is still struggling to recover.”
For those on the fence about buying, uncertainty about selling an existing home (77 percent), concern about getting a fair price for the home (67 percent) and emotions (58 percent) are holding them back. For those who have sold homes in the past year, despite the down market 78 percent report that they were satisfied with the sale. Of these, 32 percent were very satisfied with the final price of their home and 46 percent were grateful they were able to sell given market conditions. A relatively small number, 22 percent, indicated that they were disappointed or resentful about the price they received for their home.
The survey highlighted Americans’ interest in trading up their homes. Of the 45 percent looking to trade up, 64 percent wanted more space or property, 49 percent a nicer house and 41 percent a better neighborhood. Only 21 percent surveyed said they were looking to scale down, and 34 percent said that they wanted a similar home.
The survey highlighted the importance of getting the right price in today’s market —74 percent of buyers believe that many homes could meet their needs and that price is a significant differentiator, while 26 percent stated that they were willing to pay top of market for a home that specifically suits their needs. In setting the right price, however, sellers were split—with 53 percent wanting to price right at or slightly below market to attract more bids and 47 percent wanting to price slightly higher than market and hoping to find a buyer willing to pay more.
The majority of respondents highlighted the importance of real estate agents in the process of buying or selling their home. Seventy-five percent of those surveyed said that an agent is very important or essential to this process, with only 24 percent saying agents are helpful but not imperative.
“Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes,” added Mallozzi. “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”
The Prudential Real Estate Outlook Survey was conducted online. The margin of error is +/- 3 percent. A more detailed breakdown of the data is available, as well as supporting charts and visuals, at www.news.prudential.com.
The survey results were also presented at Prudential Real Estate Affiliates’ (PREA’s) 2011 Prudential Sales Convention held in San Diego, CA last week. Company President Earl Lee addressed attendees there, echoing the survey statistics and stressing the importance of homeownership.
“Over the past four years we have fought, persevered and overcame because we believe in homeownership,” Lee said. “Consumers have incredible opportunities now. We are moving to a better time and people are spending more money.”
He also noted the NAR housing affordability index is “at an all-time high, but we aren’t out of the woods yet.” He added that while consumers are focusing on their monthly spend rather than overall home prices, “there are golden opportunities for buyers today that won’t last. Consumers believe that the brighter days in real estate are still years ahead, but they believe that real estate is a good investment. Homeownership is still essential and real estate is an economic keystone.”
Mallozzi also introduced “Nextwork,” an online virtual community for Prudential agents where they will be able to access coaching programs, coach others, share referrals, ideas and more.
“Nextwork is going to take Prudential to a whole, new level and offer a new way to challenge ourselves by seeing what’s next and what works,” he said. “It will offer a fresh perspective and tie the network together.”
The company also released this year’s list of Gibraltar Circle recipients. The Gibraltar Circle Award is presented to the Top 50 companies in the Prudential Real Estate Affiliate Network. Here is a list of this year’s awardees:
1. Prudential Douglas Elliman
2. Prudential California- Southern California and Central Coast
3. Prudential Fox & Roach
4. Prudential Connecticut
5. Prudential Florida Realty
6. Prudential Rubloff Properties- Chicago

Commercial sales jump locally in 2010. Carpe Diem. Time to buy..

— Local commercial property sales rebounded in 2010, a trend that's continuing this year amid an improved economy and lending climate.

Sales of Chicago-area commercial properties totaled nearly $5.1 billion last year, a 164% gain from 2009, according to Real Capital Analytics Inc., a New York-based research firm. Investors have become especially aggressive bidding up prices of trophy properties like the Hyatt Center, a 49-story West Loop office tower that the Pritzker family sold for $625 million in December.
“For the best assets in Chicago, I've never seen more fierce competition than right now, including 2006-2007. It's amazing,” says Dan Fasulo, a managing director and head of research at Real Capital Analytics.
Deep-pocketed institutional investors, real estate investment trusts and equity funds came charging back into the market last year, tempting some owners of big high-end properties to sell out.
At the same time, activity is picking up at the bottom of the market, as more lenders unload distressed properties at steep discounts. Brokers chatter that buyers today either want “trophies or trash.”
The most dramatic sales surge occurred in the office sector, where the 46 properties sold represented more than double the transactions that took place in 2009. Volume, which jumped from $493.6 million to $2.7 billion in 2010, surpassed 2008's total of $2.2 billion and accounted for more than half of all commercial property sales in Chicago last year.
In addition to Class A downtown properties like the Hyatt Center, the total included a vacant 209,000-square-foot office building in Rolling Meadows that Chicago-based Imperial Realty Co. bought for $4.5 million, about 15% of the outstanding debt on the property.
Fewer Chicago-area apartment properties sold last year — just 20, compared to 47 in 2009. But a few big deals helped push the dollar volume of transactions up by 84%. In the biggest local apartment deal in the past three years, J. P. Morgan Asset Management paid $182 million for a majority stake in the 474 apartments and other commercial space in the Aqua near Millennium Park, one of the most expensive apartment buildings in the city.
The apartment market is the healthiest real estate sector by far, one reason prices have surged over the past year. But with occupancies and rents continuing to rise, some landlords are reluctant to give up future income growth for a quick cashout.
“A lot of people are indecisive as to whether they'll sell or hold,” says Mark Stern, a senior vice-president with Waterton Associates LLC, a Chicago-based apartment investor.
Sales of Chicago-area warehouses and manufacturing facilities lagged behind other commercial property types, posting just an 8% increase by volume year over year.
Amid rebounding prices, first-year returns, or capitalization rates, on local properties fell for each of the four main property types, dropping by as much as 150 basis points for office properties. As values increase, lenders are dispensing with “pretend and extend” tactics and bringing more properties to market. Mr. Fasulo says the wave of distress that has plagued the market has finally subsided and predicts loan resolutions will significantly outnumber any new distress going forward.
While lenders remain cautious about real estate, the availability of debt to finance property acquisitions continues to increase, and interest rates remain extremely low. The big question is interest rates, and what happens to sales volume if they jump.

If Your Goal Is to Buy Low, Buy Now!

If Your Goal Is to Buy Low, Buy Now!

There is a very famous saying which asserts “Sell High, Buy Low”. It is obviously great advice no matter what the investment. Below is a graph showing the cycle of investments. It shows the points of maximum risk and maximum opportunity when purchasing. We want to sell high (point of maximum risk) and buy low (point of maximum opportunity).

The challenge is how to determine when we have hit bottom if you are a purchaser. The only time you can guarantee a bottom is after you pass it.

However, there is more and more evidence that the COST of a home has in fact hit bottom. Notice we have used the word COST. Unless you are an all cash buyer, you must take into consideration the expense of financing a property to determine the true cost of purchasing the home. Interest rates have increased over the last quarter; and the rise in rates has counteracted any fall in prices.

Let’s look at an example:

Let’s say you were going to take out a $200,000 30-year-fixed-rate mortgage in November of 2010. At that time, interest rates were 4.17% (as per Freddie Mac). Your principle and interest payment would have come to $974.54. According to the most recent report from Case Shiller house prices fell 3.9% in the 4th quarter of 2010. The most recent report from the Federal Housing Finance Agency shows a 0.8% fall in prices. Let’s use the larger percentage decrease: 3.9%.

For the sake of keeping the math simple, we will now say you can get the same house with a $192,000 mortgage (4% discount from November price). Interest rates are now 4.95% (as per Freddie Mac).

Your principle and interest payment would now be $1,067.54.

By waiting to pay less for the PRICE of the house, the COST increased $93 a month. That adds up to $1,116 a year and over $33,000 over the life of the loan.

We realize that there are other things to consider (ex. the mortgage tax deduction, etc.). This example is just a simple way to show that there is a difference between COST and PRICE.

Bottom Line

If you want to buy low, buy now. It appears COST has hit its lowest point.

HOME LIGHTING: 7 THINGS YOU DIDN'T KNOW BUT SHOULD

 

 

HOME LIGHTING: 7 THINGS YOU DIDN'T KNOW BUT SHOULD

Lighting is a significant expense for many of us, and it also affects how we work, play and feel. The good news is that new advances in technology are providing more comfort, flexibility and efficiency.

1. $1 Invested in Efficient Lighting Can Pay Back up to $6 in Energy Savings
The standard incandescent bulb – what we typically think of as a "basic light bulb" – is a pretty inefficient piece of technology, wasting 90 to 98% of its electrical use as heat rather than useful light. Much better are fluorescents, including the now-ubiquitous compact fluorescent lights (CFLs), which are roughly 75% more efficient for the same light output.
By now, many people are aware of this fact, but few have taken a moment to actually calculate how much money they could save if they switched out their high-use bulbs to CFLs, as the commercials instruct us. In his book Wind Power for Dummies, Ian Woofenden calculates that a family using a 75-watt incandescent for six hours per day would spend about $54 a year on energy (at 32 cents per kWh, which admittedly is higher than most current prices, although experts expect utility rates to climb in the near future), including the costs of replacement bulbs at 75 cents each. If they replaced that instead with a 20-watt CFL, to produce the same amount of light, it would cost $14 a year to power. That fluorescent probably cost $6 but should last them four years at a use of six hours a day (without rapid switching), leading to a total expenditure of $15.50 per year over that time – $38.50 less per year than using incandescents. That's a simple return on investment (ROI) of 642% per year.
That kind of ROI is hard to beat, which explains why heavy energy users, such as the managers of large commercial buildings, are switching to greener lighting in droves. Few technologies provide such a rapid payback on investment, and this blows away potential rivals like generating your own solar or wind power.
One caveat: lighting tends to make up only about 9% of the typical American home's annual electricity use, so switching out your bulbs isn't necessarily going to make you rich (though it is certainly great for the planet). For commercial facilities, however, lighting makes up an average of 38% of electricity use.
2. Not All Compact Fluorescent Bulbs Last a Long Time
Some discount brands of compact fluorescents have disappointed consumers with short lives and relatively poor light quality. It is true that rapid switching is especially hard on them, so they often aren't good candidates for closets. Cold temperatures also decrease their lifespans.
But to ensure quality, look for Energy Star-certified models, since they must meet a range of criteria that go beyond energy efficiency. They must come with a two-year warranty, have a minimum rated lifespan of at least 6,000 hours and cannot emit an audible noise. They must turn on in less than one second and reach at least 80% of their output within three minutes. They can't have more than five milligrams of mercury.
3. Spent Fluorescents Shouldn't Be Tossed in the Trash
All fluorescent bulbs contain a small, and decreasing, amount of mercury, which is toxic. They actually result in less mercury released into the environment than incandescents, since those use so much more energy, much of which is generated from coal (which releases mercury). You can opt for low-mercury and safety CFLs, which have a protective outer dome to contain the contents in case of breakage.
If a fluorescent light breaks, ventilate the room for at least 15 minutes, keeping everyone away. Carefully scoop up all fragments with a piece of cardboard and use sticky tape to pick up any remaining residue. Then wipe the area with damp paper towels and place everything in a sealed container (glass is best). Take everything to your local hazardous waste dump, or find a location at lamprecycle.org. Same goes for spent but unbroken CFLs – it is illegal to throw them in the trash in many places. Luckily, many retailers, such as Home Depot, are sponsoring collection spots as well
4. Installing Dimmers Could Save More Energy Than Changing Bulbs
We interviewed some lighting experts who argued that if you are going to change one thing about your lighting, add some dimmers rather than switch to CFLs or LEDs. More efficient bulbs certainly have benefits, but they do require some adjustment on the part of users, because they are not exactly the same as the incandescents we're used to. Dimmers, on the other hand, require no learning curve, and provide added flexibility, comfort and beauty.
"Even if you never use the dimmer you installed, it saves about four percent of the energy for that light," Michael Smith, a VP of dimmer maker Lutron, told us. This is because today's electronic dimmers, which have dominated the market over recent years, have circuitry that optimizes efficiency. Any time you dim the lights down, you use less energy.
Many modern dimmers come with remote controls, and they can be readily tied in to whole-house systems, or programmed for security and convenience.

5. Halogen Bulbs Are Often the Best Choice for Dimmers
When we started working on Green Lighting, we didn't think too much of halogen bulbs, since they are only 10 to 40% more energy efficient than incandescents, and last only two to three times longer (versus more impressive CFLs and LEDs). But through our research and experimentation, we gained more appreciation for them as affordable and convenient stopgap options for the next few years, particularly when it comes to dimming.
Halogens are really incandescents with some added technology, and they dim like incandescents, in a very steady, smooth progression from 100% down to zero. Dimming them actually makes them last longer and saves energy, and the small size of halogens means they work great for track lighting, under cabinets and many other applications. In contrast, normal CFLs cannot be dimmed. Those models offered with a dimmable ballast are more expensive but don't perform as smoothly as what people are used to; they dim in stages and must be started over each time they are switched off. LEDs can be nicely dimmed with the proper circuitry but the market isn't quite there for most practical applications.
6. Standard Overhead Lighting Is Worse than Alternatives
Most of us grew up with a single overhead light in each room (or a bank of lights in the case of classrooms and work spaces), since that's the easiest for builders to install. But as interior designers know, a single overhead light is about the least flattering and least comfortable scheme there is. It tends to produce glare and harsh shadows that can be unpleasant and hurt productivity, since it can lead to eye strain.
It's always advisable to have at least two sources of light for each space, and preferably not a central overhead. Architectural lighting can work wonders, and it's not difficult or expensive to install. Place small lights called coves on the tops of cabinets, shining up toward the ceiling, to make your kitchen look larger and more inviting. Place a valence on a wall, which shines light up and down, or use a sconce for elegance. If you've ever been to a Hollister clothing store, note the dramatic effects that can be achieved with spot lighting.
For bedrooms, soften the light with recessed downlights (ideally aimed at the foot of the bed), paired with a table lamp or directional lights at the head of the bed for reading. In offices, use diffusers with fluorescents to soften them and pair them with wall lights or ample daylighting. Brighten a basement by angling a few recessed ceiling lights against a lightly colored wall.

7. LEDs Will Become More and More Common
Light emitting diodes (LEDs) have been around for decades, but they have really only recently become bright enough to work as general lighting. Their development is progressing rapidly, and their cost is dropping. Several major manufacturers (GE, Philips, Sylvania, Lemnis) are poised to offer "retrofit" bulbs that work in standard fixtures, replacing a 60-watt bulb for around 12 watts, for surprisingly competitive prices.
LEDs are widely seen as the future of lighting, and they are an exciting technology that is now being embraced by first adopters. However there will be some adjustment period. Although they are getting closer to replacing other bright lights, they are still not as good at projecting illumination in 360 degrees. This is why they have historically been used more for directional lighting (as in flashlights and desk lamps), and they can cause shadowing. LEDs also thus far produce cooler light, although quality is improving. In general, it's a good idea to stay away from discount brands, which have had some early quality issues. Go for something with a decent warranty.
LEDs are expected to last for tens of thousands of hours, they are highly efficient, and they are resistant to water and mechanical shock. So there are many good reasons to support them now, as well as look forward to the future.