On Tuesday, July 27, 2010, the Fremont City Council approved new rules for second-story additions. The rules ban these additions in the Glenmoor neighborhood but allow additions up to 27 feet in Mission Ranch. These are the only neighborhoods subject to the standards. Additions are still allowed in all other areas of the City of Fremont.

These new regulations were created in response to complaints by some property owners in the Mission Ranch neighborhood about the impact that “Monster Home” remodeling projects were having on privacy and views.They seek to strike a compromise between preserving neighborhood character and protecting private property rights.

Fremont had considered a total ban on second story additions but relented following public outcry. Instead, 18 months ago they placed a moratorium on additions while City staff studied the issue and developed the new standards. Bay East members and staff testified at Planning Commission and City Council meetings that property owners needed greater certainty in regards to what they can and can’t do with their homes.

Property owners in the Mission Ranch neighborhoods will be able to add a second story to their homes as long as the addition meets certain criteria. Glenmoor owners are allowed to expand their homes but not add a second story.

Reprinted with permission of Bay East Association of Realtors from the Bay East Government Affairs Weekly Report.

If you’re a homeowner, it’s a given that you claim the mortgage interest deduction on your tax returns. If you are a green-minded homeowner, you may be eligible for a federal tax credit if you purchase or have purchased (keep those receipts) an energy-efficient product or a renewable energy system for your home.

These credits apply to the following if purchased between Jan. 1, 2009, and Dec. 31, 2010: Biomass stoves; insulation; heating, ventilation, and air conditioning upgrades; windows and doors; roofs; and non-solar water heaters. The credit allows homeowners every two years to claim 30 percent of the cost of the system, for a maximum credit of $1,500. This credit expires Dec. 31, 2010. Please note that some of these tax credits do not apply to installation costs, and not all ENERGY STAR products qualify for the tax credits. Please consult http://www.energystar.gov/index.cfm?c=tax_credits.tx_index for specifics.

If you’ve decided to purchase small wind turbines, a geothermal heat pump, or a solar energy system for your principal residence or a new home construction, you have until Dec. 31, 2016, to make the purchase. You also can receive a tax credit of 30 percent of the cost (no upper limit).

Check out the following resources:

• Database of State and Federal Incentives for Renewables & Efficiency (http://www.dsireusa.org/): Provides a comprehensive list of all local, state, and federal rebates, tax credits, and property tax reductions for green enhancements to homes and new construction.

• Better Than a Credit: If you participated in the Cash for Clunkers program and purchased a more fuel-efficient car, remember, your $3,500 or $4,500 rebate is not considered taxable income. If you actually purchased a hybrid, you may qualify for an energy tax credit (http://www.fueleconomy.gov/Feg/tax_hybrid.shtml). Cars purchased after Dec. 31, 2010, are no longer eligible for the energy tax credit.

• ENERGY STAR Rebates and Partners: Type in your ZIP Code and find tax exemptions, rebates, or discounts on ENERGY STAR-rated products in your local area–everything from DVD players to water heaters at http://www.energystar.gov/index.cfm?fuseaction=rebate.rebate locator.

Reprinted with permission of the California Association of Realtors

Great news for buyers with transactions that did not close before the June 30, 2010 deadline for the homebuyer tax credit — the House and Senate have passed legislation extending the deadline for transactions to close and still qualify for the credit to September 30, 2010. To read more…click here.

Check out this great chart to better understand the short sale process. Have questions about how it works, and how it will differ from a traditional sale? Read on! When you’re done, call or email us with your additional questions.

Every year at about this time, we see the “Spring Buying Season” open for business. We typically mean that sellers busily get their homes ready to be sold, buyers clean up their financials and contact their loan brokers, and everyone begins scurrying around town checking out homes and schools and making offers. The goal — move before the end of summer, be settled in for kids to start at new schools in the fall.

So what’s different this year? Families who need to move are still trying to be settled before school starts in September. However, if families do not

need

to move, they aren’t moving. More and more people are staying put if they can.

How about the ones who are moving? Are they renting or buying? We see more people renting if they are coming out of a foreclosure or short sale. It’s not impossible to buy a home if you’ve been foreclosed upon or completed a short sale, but it is more challenging. Moreover, families are feeling burned by the experience of having their home’s value drop in the last couple of years, and many are shy about buying again.

So who is buying? Investors are always looking, but we are more interested in the families who buy. A lot of the families buying homes are those who felt priced out of the market before, and now they see an opportunity to purchase a home in which to raise their children. These are folks who intend to stay in their new homes for a number of years. Others are families who see a chance now to start small, in a starter home, and move up in a few years when the values rise. This is a very reasonable expectation these days. No one is too sure how the values will fare over the next couple of years, but it is not unreasable to think they will rise above current values within five years. So buying now is a very smart decision.

And who is selling? It will come as no surprise that homeowners who now owe more than their home is worth are selling in short sales. Short sales now comprise a hefty portion of the available inventory. Some of these homeowners have genuinely fallen on hard times and are unable to make their mortgage payments; others have made the financial decision to stop paying their mortgage (known as a strategic default) because it no longer makes sense to pay on a significantly underwater mortgage.

Other sellers are those who were going to sell now regardless of what has happened in the market — traditional sellers who are not short selling. A lot of the traditional sales are couples who planned to retire this year and move to another community or a smaller home. Their home’s equity has fallen in the last couple of years, but they have small (or no) mortgage balance and life goals trump the financial aspects of their home. Yes, they will realize a smaller profit than they would have had they sold a few years ago, but they still want to be in Arizona or near their grandchildren or in a smaller home. Traditional sellers are at a great advantage in the marketplace right now, as buyers who enter into a contract with a traditional seller can be reasonably assured that their transaction will close, and close on time.

The other sellers are the banks selling their foreclosed inventory. This component of the market has been dwindling in recent months as banks heistate to flood the market with distressed inventory for fear of depressing prices even further. We expect to see this change in the coming months, as banks cannot sit on unsold inventory without running afoul of their shareholders’ expectations, and not foreclosing on delinquent mortgages is similarly irresponsible from a financial perspective.

The feeding frenzy that is the typical Spring Buying Season is definitely turned on its head this year, but there is no doubt that the market activity will still take place. It will be very interesting to see how all of the competing needs and expectations of the market’s players come together.

Today, Gov. Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law. AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

Call us for more information!

If you are thinking of buying this spring, you may be looking around and wondering….what exactly are you going to buy? There are very few homes for sale right now. Sellers who have been holding off should reconsider — this is a great time to sell. With inventory low and buyers looking to purchase, you can be well-positioned if you price your home right and get it on the market in time to take advantage of the tax credits. Think about it!

We have seen this in our practice, and it’s being noticed on a large scale — homeowners all around the country, and largely in the Bay Area, are walking away from mortgages that far exceed the value of their homes. Read more here in the Chronicle.

In another effort to stem the tide of foreclosures, President Obama is instituting a plan whereby homeowners can actually receive a bit of cash for completing a short sale. Read the details here in the New York Times.

February 2010 Housing Statistics posted!