Are you thinking about doing some remodeling? If so, for the best return on investment, go green. The new term is “eco-renovations” and some homebuyers are paying a premium for the added value of energy-efficient houses.

• Light Bulbs – Sounds too easy, but CFL florescent light bulbs use a quarter of the electricity as regular light bulbs. Since lighting on average accounts for 20% of your home energy use, this is a quick fix.
• Recycling -If your neighborhood doesn’t have curbside recycling, you can now recycle #5 plastics (cottage cheese, prescription drug and yogurt containers) at most Whole Foods locations.
• Energy Efficient Appliances – EPA’s Energy Star appliances may be 10% to 50% more energy efficient. Installing a programmable thermostat and motion detectors are advised. Visit the Department of Energy’s site for more information: www.eia.doe.gov
• Paints – Use new “low-VOC” paints, which stand for low “volatile organic compounds.” Many people with allergies, asthma and chemical sensitivities ask about this now.
• Tax Credits – With eco-remodeling, you may qualify for federal, state or local tax credits given for green projects. Search on www.thedailygreen.com for updates. Remember – green may bring more gold (money) when you decide to sell. So keep track of your improvements and document how your monthly energy bills change over time.

Leslie Appleton Young, California Association of Realtors economist recently spoke about the California real estate market, giving CAR’s forecast for 2010.  Here are some highlights:

• 2004-2005 housing units sold peaked.
• 2007 CAR membership peaked (lagged 2 years), and has since declined.
• Median price of homes in California peaked in May 2007 and dropped to a low in February 2009.
• California  is a tale of two housing markets: Distressed and Non-Distressed.  Median Price Distressed: $250,000; Median Price Non-Distressed: $485,000.
• Santa Clara County: Median Price $555,000.
• New construction in California was down 50% in 2008 and another 50% in 2009.
• Housing starts are important to economic strength.  The prediction is for a “lack luster recovery next year” in 2010.
• The median home price in California is forecast to rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year.
• Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.

“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said C.A.R. President James Liptak.  “This follows two years of double-digit sales declines in 2006 and 2007.  Looking ahead, we expect sales to moderate to a more sustainable pace.” 

“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added.  “2010 will mark the beginning of the ‘new normal’ for California’s housing market.  This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

 “With distressed properties accounting for nearly one-third of the sales in 2010, invento

Private Mortgage Advisors, an affiliate of Wells Fargo Home Mortgage and Alain Pinel Realtors has a temporary rate buydown option that can lower home buyer’s initial mortgage payments. That means turning lookers into home buyers.

This eases them into their mortgage. With the buydown program, qualified borrowers purchase a temporary rate discount as much as 3% below the established note rate. This discount can be offered by the home seller up to maximum allowable contributions.

Homebuyers like the temporary buydown option because it may give them an opportunity to purchase a Saratoga home right now—and the time to ease into their full payment schedule during the first few years of ownership.  Homebuyers also like knowing that while their initial payments are lower, they are still reducing their mortgage balance because they’re paying both principal and interest each month.

Buydowns work with a variety of mortgage products, including FHA, VA, and other conventional loans offered by Wells Fargo Home Mortgage.

Including this option in your Realtor’s listings, internet presence and other real estate marketing will give a home seller one more way to differentiate themself in today’s competitive market. Since most Saratoga homes start over $1 million and most mortgages are non-conforming jumbo loans, financing is very important in making the sale.