10 New Year’s Resolutions for Home Owners

Regardless of where you stand on 2016 Resolutions— it’s okay, we like you just the way you are.  It’s your home we should talk about.  Home ownership is a stewardship requiring the regular planning and management of your resources.  This is the investment that is most visible in your everyday life. Putting your home on your resolution horizon can help keep that investment and the very walls around you shipshape.  Here are some suggestions to starting the year off right: 

1. Replace smoke detector batteries.

2. Have your furnace inspected. Replace the filter if needed. 

3. Have your chimney cleaned and consider installing a clean-air gas insert.

4. Make sure rain gutters and storm drains are clear and working properly to divert water. Extend gutters away from the foundation (but not at your neighbor.)

5. Have your home inspected for wood destroying pests and organisms.  

6. Consider a home energy audit and plan for future energy upgrades. Replace 5 light bulbs in your house with energy saving fluorescents. 

7. Get graph paper and start planning a drought resistant garden. 

8. Start a home improvement savings account. 

9. Refinance as rates are expected to rise. 

10. Call us Berkeley Hills Realty for a home assessment. We can tell you what your home is worth now and what future improvements are most likely to add value. 

How my Coffee Shop Increased the Value of my Home

Fifteen years ago, Buyers looking for the Bay Area "dream house" were likely to tout a bay view as a must-have. In today's market a view is nice, but more and more buyers are willing to sacrifice a fleeting glimpse of the Golden Gate Bridge for the more practical ability to walk to a local coffee shop.

A new study, Walking the Walk, came out in August 2009 with a subtitle; "How Walkability Raises Home Values in U.S. Cities." The research shows that homes in walkable neighborhoods are worth more money in nearly all metropolitan areas. And yes, coffee shops count. The Walk Score algorithm used in the study looks at 13 categories; coffee shop, grocery store, movie theater, park, bookstore, drug store, clothing/music store, restaurant, bar, school, library, fitness and hardware store. The study author, Joe Cortright, states, "An additional one point improvement in average Walk Scores adds between $700 and $3,000 to the value of a typical house, holding all other factors constant" (Remind me to tip my barista.) Berkeley Hills Realty Agents know from anecdotal experience that this is true, and now we are happy to have direct data to point towards.

Local amenities not only support the value of our housing stock, but also add to the joy of our daily lives. It just feels good to live and work in a vibrant community with diverse offerings. Not so good, however, is watching this marathon recession take its toll on our local treasures.

Noticing too many vacant tables at our favorite restaurants, impassioned Bay Area Realtors have recently taken up the cause. Via twitter and facebook a couple of Berkeley agents with the handles @berkhills and @serkes have started a proactive campaign. The first Realtor Feedup happened last night in support of our local restaurants. Realtors met at a local British style pub, the Kensington Circus, to start a weekly movement in direct support of our local eateries. The intent is to support a new local restaurant each week-- by arriving in mass and paying by cash.

Support your favorite walkable businesses and protect the value of your own home while you're at it. Better yet, form your own dinner club and pay in cash. It doesn't cost you any more to pay cash, but it does save the restaurant on bank charges.

To find out your homes walkability rating via the algorithms used in the "Walking the Walk" study, go to WalkScore.com. If you wish to participate in the next East Bay Realtor Feedup, we are headed to Bistro 1491 this next Thursday at 6:00. To get breaking Realtor Feedup updates, follow @berkhills and @serkes on Twitter.

Homeowner Affordability and Stability Plan

From the National Association of Realtors

On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan, designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages. In doing so, the plan not only helps responsible homeowners behind on their payments or at risk of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.

The key components of the plan are:

1. Government Sponsored Enterprises (GSEs) Refinancing for Up to 4 to 5 Million Responsible Homeowners with GSE loans to Make Their Mortgages More Affordable

2. A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners

3. Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac

Download NAR's Summary on the Homeowner Affordability and Stability Plan> (PDF: 100K)
Chart: The New Housing Plan> (The New York Times, Feb. 18, 2009)

How to Cut Your Property Tax Bill

Courtesy of David Anderson, Chicago Title

Proposition 8 - allows a temporary tax reduction when a property’s market value on January 1st, is below the prior years assessed value.

Ask your Assessor - if your home is worth less than you paid, chances are you can get a temporary reduction in your property taxes. It’s free and easy to do yourself.

Assessors in some Bay Area counties hit hard by the housing downturn – Contra Costa, Alameda, Santa Clara and Solano – are automatically reviewing homes purchased in the past few years to see if the homeowner qualifies for a cut in assessed value for 2008-09.

Even in these counties, homeowners who think their home’s market value on Jan. 1 was lower than the assessed value on their last property tax bill can ask for a review.

You can call or write your assessor’s office or download a form from their Web site and mail it to the assessor. To provide tax relief the assessor will be looking at recent sales in your area that are comparable to your home. If the homeowner and the assessor cannot agree on a value through this information process, the homeowner can file a formal appeal with the county’s assessment appeals board, which will have the final say on the property’s value.

The formal appeal must be submitted between July 2 and Sept. 15 in counties that send assessment notices to all homeowners by Aug. 1. In the Bay Area, these include Alameda, San Francisco and Santa Clara counties.

Before filing a claim for an adjustment, be advised that your assessed value could increase once market values go up. Property owners should consult directly with the Assessors Office to inquire on how this would be determined before filing any forms.

For more information on assessment appeals from the state Board of Equalization, see

boe.ca.gov/proptaxes/pdf/pub30.pdf

Access forms online for Alameda and Contra Costa:

http://www.acgov.org/forms/assessor/2008_2009_informal_request_decline_market_value.pdf

http://www.co.contra-costa.ca.us/depart/assr/forms/4695.pdf

Tip for Homeowners: Your Realtor can help you by providing some recent home sales data in your area which can help justify your request to lower the assessed value of your home. Some counties are considered depreciating markets even though individual cities and neighborhoods remain strong. (See our post on Appraising the Current Market Situation.) Check with your local real estate representative to learn more about home values in your area, and to discuss whether a reduction of your home's assessed value can be justified.