What Buyers Need to Know About HOA's

When searching for a home, you may end up selecting a property in a community with a Homeowners Association (HOA). Before you buy, it’s important to know how an HOA works and what they mean for you.

According to a recent article on realtor.com,

“In a nutshell, an HOA helps ensure that your community looks its best and functions smoothly…The number of Americans living in homes with HOAs is on the rise, growing from a mere 1% in 1970 to 25% today, according to the Foundation for Community Association Research.”

An HOA is governed by a board nominated by those living in the neighborhood. It is designed to make sure the residents have a support structure to maintain the value of the community while abiding by a set of guidelines called Common Restrictive Covenants (CC&R),

“Simply put, CC&Rs are just the rules you’ll have to follow if you live in that community. Unlike zoning regulations, which are government-imposed requirements on how land can be used, restrictive covenants are established by HOAs to maintain the attractiveness and value of the property.”

It’s important for homeowners to understand that each HOA is a little different, and they usually have monthly or quarterly fees required for homeowners. These fees can vary based on property size, number of residents, amenities, and more. There may be additional fees charged to homeowners if the reserve fund for the HOA cannot cover a major or unexpected cost, like severe storm damage.

The fees, however, also help maintain common areas such as swimming pools, tennis courts, elevators (for high-rise buildings), and regular wear and tear. Although they are an added cost to the homeowner, an HOA can be a major benefit when it comes to maintaining the value of your neighborhood and your property.

The same article continues to say,

“After your offer to buy a home is accepted, you are legally entitled to receive and review the community’s CC&Rs over a certain number of days (typically between three and 10)…If you spot anything in the restrictive covenants you absolutely can’t live with, you can bring it up with the HOA board or just back out of your contract completely (and keep your deposit).”

Most lenders will factor your HOA fees into your loan package, ensuring the amount of the loan is appropriate for what you can truly afford.

There are some great benefits to having an HOA oversee your neighborhood, and it’s important to understand what fees, structures, and regulations will come into play if there is an HOA where you’d like to live.

Bottom Line

When you’re looking at a potential property to buy, be sure to work with a professional who can help you understand the neighborhood’s HOA structure and fees. This way, you’ll feel confident and fully informed when buying a home.

Hotel Plans for the Earthquake Damaged Historic Post Office in Downtown Napa

JENNIFER HUFFMAN jhuffman@napanews.com

Developers this week presented the city with refined designs for the approved boutique hotel on the site of the former Franklin Street post office in downtown Napa.

The changes were made after receiving initial comments from Napa County Landmarks and the city’s Planning Commission during a preliminary design review in June.

At that time, some reviewers thought the first version of the wrap around design overwhelmed the post office building and covered too much of it.

“I think we’ve done an over-the-top job” in both preserving and presenting the historic building, said developer Jim Keller. “It’s really exciting.”

Wings of the new hotel still wrap around the old post office building, but in this latest version there are more transparent panels, which allow greater visibility of the post office, located at 1351 Second St.

Not only is his group preserving the front of the building, it’s also preserving the sides as well – something that wasn’t explicitly required, said Keller.

“We came up with a plan that’s really going to have an awesome look,” Keller said. “I think we’ve overachieved as far as the preservation of the building.”

The changes were made after receiving initial comments from Napa County Landmarks and the city’s Planning Commission during a preliminary design review in June.

At that time, some reviewers thought the first version of the wrap around design overwhelmed the post office building and covered too much of it.

The last version was more of a rough draft, compared to the new refined design, Keller said. “We took it up another level or two.”

These new images create what he described as “a jewel box effect,” with the crown jewel – the Art Deco-style post office building — in the middle, said Keller. The historic building is the “obvious the centerpiece and focal point.”

The historic post office lobby would be fully renovated and used as the hotel lobby and bar, accommodating guests as well as the general public, according to design documents. The interior features of the post office will be visible to all, rather than turning the post office into a private office or other commercial use, said the documents.

The Third Street-facing side of the project, currently home to Zeller’s Ace Hardware, has also been refined. “We made that a little more user friendly and broke up some of the massing. The design has been elevated,” yet still fits within the parameters of the already approved project, he said.

Plans call for a 175,000-square-foot, five-story, 156-key hotel using the site of the former post office and adjacent land where Zeller’s Ace Hardware now operates.

A separate, five-story parking garage would be built at the southeast corner of Second and Randolph streets, a corner now used for surface parking.

The project will cost more than $100 million, Keller said.

Keller, a Napa developer, bought the post office building in 2017 for $2 million. He’s since partnered with Cypress Equities, based in Dallas.

The hotel’s footprint will take over much of the block along Second between Franklin and Randolph streets, and along Randolph between Second and Third streets. The Napa City Council granted a rezoning and a building agreement in November 2018.

Having financial partners lined up in advance has helped move the project along, Keller said. Being located within a state-designated Opportunity Zone, which offers tax breaks to investors, is another. Napa has two such zones, including one in downtown Napa.

As the process continues, Keller said he remains mindful of the fragile state of the post office. “If we get hit with another earthquake,” the building might not survive.

“We’re trying to move as fast as we can,” said Keller.

His next steps include final design approval from the Planning Commission and Cultural Heritage Commission. Meeting dates have not been set.

If all goes as planned, “I’m hoping in the next 12 months we can be” under construction, he said. The hotel could take two to three years to build.

The hotel project was never a sure thing. After the 2014 earthquake, the USPS originally moved to demolish the damaged post office building.

The agency said that it would cost $8 million to repair quake damage, while it would cost only $500,000 for demolition.

The Napa Franklin Station was built in 1933 with funding from the federal Public Works Administration. In 1985, it was placed on the National Register of Historic Places.

After considerable public outcry, the USPS decided to try selling the building to a buyer who could repair the structure and preserve its architectural integrity.

6 Graphs Showing the Strength of the Current Housing Market

Some Highlights:

• Keeping an eye on the current status of the housing market is one of the best ways to make powerful and confident decisions when buying or selling a home.

• Mortgage rates remaining near historic lows and houses selling in an average of only 29 days are just two key elements driving the strength of today’s market.

• With the national data shown here, make sure to also determine what’s happening in your local market so you are fully informed when you’re ready to make your next move.

What is the Probability That Homes Values Sink?

With the current uncertainty about the economy triggered by a potential trade war, some people are waiting to purchase their first home or move-up to their dream house because they think or hope home prices will drop over the next few years. However, the experts disagree with this perspective.

Here is a table showing the predicted levels of appreciation from six major housing sources:

As we can see, every source believes home prices will continue to appreciate (albeit at lower levels than we have seen over the last several years). But, not one source is calling for residential real estate values to depreciate.

Additionally, ARCH Mortgage Insurance Company in their current Housing and Mortgage Market Review revealed their latest ARCH Risk Index, which estimates the probability of home prices being lower in two years. There was not one state that even had a moderate probability of home prices lowering. In fact, 34 of the 50 states had a minimal probability.

Bottom Line

Those waiting for prices to fall before purchasing a home should realize that the probability of that happening anytime soon is very low. With mortgage rates already at near historic lows, now may be the time to act.

Fishing the Madison River

We can’t just work all the time and this year my husband and I took a vacation to Madison Valley Ranch in Ennis, Montana. This was our second year visiting and will now turn into an annual visit. The staff at the Ranch make you feel like family, the executive Chef, Matt, prepares the most delicious meals, the guides that take you drift boat fishing on the Madison River are incredible and the ranch is beautiful. The accommodations are lovely and there is a Moose with her family who frequent the property with plenty of deer, sandhill cranes and more. While fishing you will certainly see beautiful scenery but you may even see a bear, moose, deer, bald eagle, golden eagle, osprey and others.

We can’t say enough about this beautiful place. Below is a picture of my husband catching a 21 inch Brown Trout. Our guide (his name is River) said he had not seen anyone catch a fish that large on a dry fly. I caught an 18 inch Rainbow Trout. Both were caught with a Grasshopper fly. The grasshoppers were hatching so there were many of them around that the fish were biting on including ours!

The Role Access Plays in Getting Your House Sold

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you with the entire process and you’ve been asked what level of access you want to provide to potential buyers.

There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access you can provide to your agent to be able to show your home.

Here are five levels of access you can provide to a buyer, each with a brief description:

• Lockbox on the Door – This allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.

• Providing a Key to the Home – Although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.

• Open Access with a Phone Call – The seller allows showing with just a phone call’s notice.

• By Appointment Only – Example: 48-hour notice. Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.

• Limited Access – Example: the home is only available for a couple of hours a day. This is the most difficult way to be able to show your house to potential buyers.

In a competitive marketplace, access can make or break your ability to get the price you are looking for, or even sell your house at all.

Home Sales Expected to Continue Increasing in 2020.

Freddie Mac, Fannie Mae, and the Mortgage Bankers Association are all projecting home sales will increase nicely in 2020.

Below is a chart depicting the projections of each entity for 2019, as well as for 2020.

As we can see, Freddie Mac, Fannie Mae, and the Mortgage Bankers Association all believe homes sales will increase steadily over the next year. If you’re a homeowner who has considered selling your house recently, now may be the best time to put it on the market.

Price Reduction on this Beautiful Private Rental

Beautiful private home on the east side of the Silverado Trail in St. Helena. Enjoy a covered, private deck with vineyard and valley views. This ensuite 2 bedroom, 2 full bath, unfurnished custom built home on a quiet, private estate is walkable to CIA and a 5 minute drive to downtown St. Helena. One story with hardwood floors, open kitchen concept with built-in gas range and oven, refrigerator, dishwasher, garbage disposal and large great room w/gas wood burning fireplace. Drive right into the attached garage and walk into the mud room with washer and dryer. New interior paint and carpeting in the 2nd bedroom. Renter to pay gas, electric and cable/internet. Water, trash and landscaping included in rent.

Pets are considered.

Now $4,000 per month with a one year lease.

Top 10 Most Expensive Cities in the U.S.

People relocating for business, new jobs or simply planning a vacation can benefit from knowing details about the most expensive cities in the United States. Understanding how much it costs to live in a city, and why, can make or break a decision to move. Not surprisingly, California cities dominate the list of America’s priciest cities.

KEY TAKEAWAYS

• Cities offer a variety of employment opportunities along with loads of culture, sports, dining, and entertainment.

• Because of the desire to live in cities, they can become quite expensive places to live.

• In the U.S., New York City is the most pricey to live in, followed by San Francisco - however, NYC is only #9 on the world's most expensive cities.

• Fast Fact: The most expensive cities to live in 2019 in the world are Hong Kong, Tokyo, and Singapore. New York City, the only American city to make the top 10, comes in at #9.

1. New York City, New York

New York City leads the pack as the most expensive city in the United States; the city, with a population exceeding 8.3 million, also tops lists of the world’s most expensive cities. The cost of living in New York is a whopping 120% higher than the national average. The average cost of homes in New York is about $501,000, compared to the national average price, which hovers around $181,000; home prices range across the five boroughs, with home prices in Manhattan exceeding $1 million. Everything costs more in New York City, from groceries to public transportation. At approximately 4.1%, as of May 2019, the city’s unemployment rate is lower than the national average of 4.3%, further encouraging people the world over to pin their hopes and dreams on making it in New York.

2. San Francisco, California

People make the decision to leave San Francisco every day, as the city’s staggeringly high cost of living and out-of-reach housing prices have been known to break many a bank. Homes cost an average of $820,000 inside the city, whose major industries include tourism, IT and financial services. It takes more than $119,000 to live well in San Francisco, but unemployment remains extremely low at just 1.9%, as of May 2019, due to highly favorable conditions offered to entrepreneurs and the one-third of all U.S. venture capital that these up-and-coming businesses attract.

3. Honolulu, Hawaii

Honolulu residents pay a lot of money for just about everything. Groceries alone cost 55% more than anywhere else in the United States; utilities cost 71% more than the national average. At $58,397, the average household income does not far exceed the average income of other expensive cities in the country. However, people in Honolulu can expect to pay 87% more than the average American pays for one dozen eggs. Honolulu enjoys an exceptionally low unemployment rate of 2.8%, as of May 2019, which means that, if nothing else, people with jobs on this Pacific island paradise can afford to eat omelets.

4. Boston, Massachusetts

Groceries and health care cost a lot of money in Boston, exceeding the average national cost by more than 20%. The city enjoys a robust higher education environment, a booming tech scene that rivals Silicon Valley and historic sites dating back to the 13 original colonies, which makes it one of the nation’s leading tourist destinations. All of these add up to an unemployment rate of 3.6%, but city residents fork out big money to live in Boston; the average home value hovers around $374,000, the median household income averages about $53,163, and it takes approximately $84,000 to live well.

5. Washington, D.C.

Being the seat of the world’s most powerful nation accounts for Washington, D.C.’s high cost of living. Government and private-sector jobs abound in the city, thanks to numerous federal agencies, think tanks, lobbying firms and a robust tourism sector. Average home values in the District stand at approximately $443,000, and the average household income is about $64,267. Similar to Boston, it takes about $83,000 to live well in Washington, D.C.

6. Oakland, California

Being located on the opposite end of the Bay Bridge might make living in Oakland a cheaper alternative to San Francisco, but the city is still a more expensive place to live than most cities in the United States. For $1,673 per month, renting an apartment in Oakland costs double the price of renting in other U.S. cities; the average home value runs about $449,800.

7. San Jose, California

Anyone looking to escape high prices in the Bay Area can head south to San Jose, located within commuting distance of San Francisco and Oakland. The presence of Silicon Valley makes everything in San Jose expensive, including housing that averages about $575,000. The median household income hovers around $81,000. The numerous tech industry employers in the city account for a well lower-than-average unemployment rate of 2.4%, as of May 2019.

8. San Diego, California

A strong defense department presence and military contracting firms, such as Northrop Grumman Corporation (NYSE: NOC) and Science Applications International Corporation (NYSE: SAIC), make California’s southernmost city one of the priciest in America. The cost of living in this city of approximately 1.3 million is 30% higher than the average cost of living in the United States. San Diego’s median household income hovers around $63,990, meaning that many residents can enjoy luxuries such as high-end eateries, yacht clubs and other pricey forms of entertainment. The average home value stands at approximately $477,800. San Diego’s unemployment rate of 3.8% edges close to the national average.

9. Los Angeles, California

Los Angeles brings to mind wealthy, glamorous movie stars, but the movie industry plays a small role in the city’s booming economy. The city's shipping industry also plays a role, as the Port of Los Angeles is one of the busiest ports in the world. A bustling manufacturing sector and a noteworthy start-up scene contribute to the city’s high cost of living. Certain ZIP codes, such as the much-ballyhooed 90210, drive up housing costs; the average home value in Los Angeles is $470,000. The median household income is around $49,745. It takes approximately $74,371 per year to live well in Los Angeles, and more than 20% of the city’s residents live in poverty.

10. Miami, Florida

Miami is the only southern U.S. city ranking on the top 10 most expensive list. A high population of wealthy foreigners, the presence of numerous international financial institutions and the busiest cruise ship port in the world give life in Miami a high price tag. The city’s average household income stands at about $48,100, and the unemployment rate of about 4.4% is just a hair above the national average. It takes about $77,000 to live well in this stylish city replete with newly constructed residential and commercial buildings.

How Property Taxes Can Impact Your Mortgage Payment

When buying a home, taxes are one of the expenses that can make a significant difference in your monthly payment. Do you know how much you might pay for property taxes in your state or local area?

When applying for a mortgage, you’ll see one of two acronyms in your paperwork – P&I or PITI – depending on how you’re including your taxes in your mortgage payment.

P&I stands for Principal and Interest, and both are parts of your monthly mortgage payment that go toward paying off the loan you borrow. PITI stands for Principal, Interest, Taxes, and Insurance, and they’re all important factors to calculate when you want to determine exactly what the cost of your new home will be.

TaxRates.org defines property taxes as,

“A municipal tax levied by counties, cities, or special tax districts on most types of real estate – including homes, businesses, and parcels of land. The amount of property tax owed depends on the appraised fair market value of the property, as determined by the property tax assessor.”

This organization also provides a map showing annual property taxes by state (including the District of Columbia), from lowest to highest, as a percentage of median home value.

The top 5 states with the highest median property taxes are New Jersey, New Hampshire, Texas, Nebraska, and Wisconsin. The states with the lowest median property taxes are Louisiana, Hawaii, Alabama, and Delaware, followed by the District of Columbia.

Bottom Line

Depending on where you live, property taxes can have a big impact on your monthly payment. To make sure your estimated taxes will fall within your desired budget, contact a local real estate professional today to find out how the neighborhood or area you choose can make a difference in your overall costs when buying a home.

Homeownership Will Always Be a Part of the American Dream

On Labor Day we celebrate the hard work that helps us achieve the American Dream.

Growing up, many of us thought about our future lives with great ambition. We drew pictures of what jobs we wanted to have and where we would live as a representation of a secure life for ourselves and our families. Today we celebrate the workers that make this country a place where those dreams can become a reality.

According to Wikipedia,

“Labor Day honors the American labor movement and the contributions that workers have made to the development, growth, endurance, strength, security, prosperity, productivity, laws, sustainability, persistence, structure, and well-being of the country.”

The hard work that happens every day across this country allows so many to achieve the American Dream. The 2019 Aspiring Home Buyers Profile by the National Association of Realtors (NAR) says,

“Approximately 75% of non-homeowners believe homeownership is part of their American Dream, while 9 in 10 current homeowners said the same.”

Looking at the number of non-owners, you may wonder, ‘If they believe in homeownership, why haven’t they bought a home yet?’. Well, increasing home prices and low inventory can be part of the reason why some haven’t jumped in, but that does not mean there is a lack of interest. The same report shows the increase in the desire to buy in the last year (as shown in the graph below):

As we can see, there are more and more people each quarter who want to buy a home. The good news is, as more inventory comes to the market, more non-homeowners will be able to fulfill their dreams. Finally, they’ll be able to move into that home they drew when they were little kids!

Bottom Line

If you’re a homeowner considering selling, this fall might be the right time, as there are buyers in the market ready to buy. Sit down with a local real estate professional to find out how you can benefit from this pent-up housing demand.

3 Things to Think About When Buying a Second Home

Some rich, urban-dwelling millennials are swapping out starter homes for vacation homes: They're renting in cities and buying country houses because they can't afford to buy in their city's expensive real estate market, according to Farran Powell of The Street.

That's certainly not the only reason why people are buying vacation homes, and millennials aren't the only ones to favor them. But buying a second home isn't a decision to be taken lightly.

"It's important to understand that second homes are different," Jean Chatzky, financial editor of NBC's "Today" Show, wrote in " Women with Money," her latest of 11 books.

There are three reasons why one might be considering a vacation home, according to Chatzky. Here's what you should consider before making the leap.

Read more: Millennials are making 3 key decisions that are wiping out the starter home — and it's changing what homeownership in America looks like

1. You want your own space in a place you visit often — but how often do you really visit?

Chatzky and her husband bought a second home in Long Beach Island, New Jersey, which they use every weekend from May through early September.

But even if you'll only use a vacation home part-time like Chatzky does, a house is still a house. Bills — including mortgage, HOA dues, utilities, cable, etc. — are still year-round responsibilities, Chatzky said. If you live far from your second home, you'll also need to pay someone to check in on the house, she added.

Some vacation homeowners also feel guilty if they want to vacation elsewhere — it can be hard to justify paying for a trip when you already have a place to visit, Chatzky said.

She advises giving the idea of a second home a trial run. She and her husband rented in Long Beach Island for four consecutive Augusts to determine if buying a home there was worthwhile.

2. You're thinking about retiring in your vacation home — but will it fit your retirement lifestyle?

Dipping into the real estate market before actually retiring may be a wise move.

"Buying a retirement place before you retire has financial benefits," Chatzky wrote. It's easier to qualify for a mortgage while employed, and you'll get a head start on paying it off; you'll have time to settle into your place and make any necessary renovations; and you'll be able to determine the cost of living in the area, she said.

"Road testing a second house you plan to use for these purposes is even more important than road testing a house you plan to vacation in," she wrote, adding that the road test should be longer than a few weeks or days. "If it still feels like a vacation, you haven't stayed long enough."

During this road test, you should consider medical care access, services, culture and entertainment, transportation, and size of the home before purchasing, Chatzky said.

Read more: The 10 best places in the US to buy a winter home right now, ranked

3. You want to make extra money — but have you considered tax laws?

The advantages of having an extra cash flow through rental income is often what appeals to millennials buying a second home instead of a primary residence. They're using these homes to build wealth and rent them out when they're not living in them, Powell reported.

"With the rise of sites like Airbnb, HomeAway, and VRBO, making some extra cash by renting out your vacation place has never been easier," Chatzky wrote. "But that doesn't mean it's easy."

For one, there are tax laws. If you rent your house for 14 days or less, you don't have to report the rental income on your tax return; if you rent it for longer than two weeks, the IRS deems it "a business for tax purposes," — but how the IRS treats it as a business varies, depending on how, you, the owner, uses it, Chatzky said.

There are also other things to look into, like peak rental times, HOA rules, sales tax laws, and possible business permits, she added.

"Keeping the place rented means scouring the market to stay on top of competitive pricing, making sure it's clean and in order before the next renters move in, being responsive to email queries, and dealing with problems as they arise," Chatzky wrote. "In effect, you either devote a big chunk of your time to managing this property or hire someone to do it for you."

By Hillary Hoffower

Business Insider

15 Elegant Ways to Dress Up Your Porch for the Fall Season

As summer comes to an end and the weather begins to cool down, what better way to welcome the season than with a festive outdoor oasis. From pumpkins to gourds, to that irresistible fall palette, there are plenty of great ideas for dressing up your porch. Welcome guests with an autumnal entrance, and easily amp up your curb appeal with these 15 brilliant fall porch decor ideas to steal for your own spaces.

Click here for the full article

A Recession Does Not Equal a Housing Crisis

Some Highlights:

• There is plenty of talk in the media about a pending economic slowdown.

• The good news is, home values actually increased in 3 of the last 5 U.S. recessions, and decreased by less than 2% in the 4th.

• Many experts predict a potential recession is on the horizon. However, housing will not be the trigger, and home values will still continue to appreciate. It will not be a repeat of the crash in the 2008 housing market.

2019 Sonoma County Wine Auction Announces Star-Studded Lots

The Sonoma County Vintners Foundation and Honorary Co-Chairs Gina Gallo and Christopher Jackson unveiled the complete list of one-of-a-kind auction lots available at the 2019 Sonoma County Wine Auction, presented by Visa Signature®. The auction lots are an exclusive way to procure sought-after wines, private experiences, dinners with America’s top chefs, and excursions not typically available to the public. A few examples include: an evening with celebrated band Lady Antebellum hosted by Christopher and Ariel Jackson of Stonestreet Estate Vineyards, a tour of Northern Italy curated by Gina Gallo and E. & J. Gallo Winery, the ultimate fan experience with San Francisco 49ers Hall of Famers and iconic vintner Merry Edwards, and a stay at Francis Ford Coppola’s private island from The Family Coppola.

The live auction will be hosted at La Crema Estate at Saralee’s Vineyard and will be the culmination of a weekend of activities taking place September 19-21. Proceeds from this event support more Sonoma County non-profit organizations than any other local fundraiser. Over $30 million has been raised since the auction’s inception, making a direct local impact on education, health and human services, the environment, and arts and culture.

“As members of this community, raising money and giving back has been important to us from the start,” said Gina Gallo, Honorary Co-Chair, of E. & J. Gallo Winery. “I’m always impressed by the unique and personal auction lots offered by Sonoma County’s wineries and growers. It’s also quite touching to see the generosity of the Sonoma County Wine Auction community and their commitment to raising funds and supporting those who truly need it. It is definitely the most fun you can have while raising money!”

“Gina and I look forward to welcoming guests to what we hope will be our most successful auction to date,” said Honorary Co-Chair Christopher Jackson of Jackson Family Wines. “In addition to the incredible auction lots, this year’s Fund-A-Need paddle raise is dedicated to helping build a Boys & Girls Club in one of the most underserved neighborhoods in Sonoma.” Adds Jackson, “this will provide educational services, experiences and opportunities that will have a lasting impact on the children and community for decades to come.”

The 40-lot collection that features GRAMMY-award winning musicians, luxurious travel excursions, extravagant meals prepared by world-class chefs, and rare behind-the-scenes experiences with three major Bay Area sports teams can be explored in advance at www.sonomacountywineauction.com. Auction lots also include special wine collections featuring large format and rare wines from Sonoma County’s outstanding wineries, perfect for those looking to enhance their cellars.

• An intimate evening with Grammy Award-winning Lady Antebellum hosted by Christopher and Ariel Jackson of Stonestreet Estate Vineyards. Gather at the newly constructed private hunting club Wing & Barrel Ranch in Sonoma, CA, for an array of coveted wine, delectable food, and the evening of a lifetime. Lady Antebellum is one of the most celebrated bands in country music and has released nine #1 hits, earned seven GRAMMY Awards, and sold more than 18 million albums.

• A Tour of Northern Italy’s most spectacular cities and remarkable wineries curated by Gina Gallo of E. & J. Gallo Winery. The trip includes business-class airline tickets for four, insider experiences and wine tastings in Milan, Piedmont, Verona, Fumane, Florence and Montalcino. Explore some of Italy’s most remarkable estates including Renato Ratti, Allegrini Winery and Argiano.

• A collection of CIRQ wines by Michael Browne and front row access to the CIRQ mailing list. This exclusive wine lot allows you to bypass the 3-4 year waiting list and includes 18 bottles of CIRQ’s highly sought-after wines in large format and library collections, as well as a tasting and personal tour of the estate.

• Ultimate fan experience with San Francisco 49ers Hall of Famers and iconic vintner Merry Edwards. Join celebrated vintner Merry Edwards and Chef Michael Mina for a pregame dinner. Then experience ESPN with Pro Football Hall of Fame Quarterback Steve Young. After, enjoy field passes and tickets for the Owners’ Suites to watch the Niners take on the Seattle Seahawks. Cap off your Hall of Fame experience with dinner in a private suite at the stadium with Edwards and one of football’s most celebrated Hall of Famers, Ronnie Lott. This lot also includes a 3-Liter collection of Merry Edwards wines signed by Merry and 49ers Alumni, and a separate stay at Merry Edwards Winery including dinner hosted by Charlie Palmer at the Dry Creek Kitchen.

• Exclusive Culinary Cult Buy-in Dinner. 6 chefs, 12 winemakers, 40 guests—one incredible night! Be indulged as some of the top chefs in America including Charlie Palmer, Scott Romano, Dustin Valette, Tim Kaulfers, Jeff Mall and Mark Stark prepare a meal so exquisite that the only thing that could possibly rival the food is the collection of wines and winemakers who will be serving them.

• Barefoot Elegance on Francis Ford Coppola’s Private Island presented by Francis Ford Coppola Winery. Spend three nights at Francis Ford Coppola’s Coral Caye private island plus two nights at Sofia Coppola’s Beach House at Turtle Inn resort in Belize for the Coppola Winery lot. The “Gilligan glam” experience includes oceanfront luxury and a “Day at the Reef” excursion for snorkeling or diving at the second largest barrier reef in the world.

• All-access passes to the 2019 St. Regis Snow Polo Championship in Aspen, Colorado courtesy of Flexjet and Senses Wines. Enjoy the freedom of private travel and experience the Flexjet Red Label difference as you fly from Sonoma, CA, to Aspen, CO, in an aircraft appointed with a custom-designed interior from the LXi Cabin Collection. Both couples will stay in luxury at The Little Nell, a 5-star, 5-diamond resort in Aspen. The winning bidder will also receive a Horse Kit valued at over $25,000 and complete access to a host of VIP events at one of the most prestigious snow polo tournaments in the world.

Among the other incredible lots are an intimate Nashville trip from Lasseter Family Winery including an evening and private concert with country music performer Brad Paisley; a journey to the Amanyara Resort in Turks and Caicos with Knights Bridge Winery; and an excursion to New Orleans with Benovia Winery featuring dinner at Emeril’s New Orleans and Trenasse.

About Sonoma County Wine Auction

The Sonoma County Wine Auction brings the region’s most renowned winemakers and growers together with distinguished collectors and generous bidders for an opportunity to acquire some of Sonoma County’s top wines and bid on once-in-a-lifetime travel experiences. Named one of the nation’s top charitable auctions by Wine Spectator, the proceeds raised benefit local Sonoma County charitable organizations. Since its inception, the Sonoma County Wine Auction has raised over $30 million to help fund charitable organizations focusing on education, health and human services, the environment and arts and culture, and has supported more nonprofits than any other fundraising event in Sonoma County. Learn more at sonomacountywineauction.com.

About Visa Signature®

Visa Signature® and Visa Infinite® cardholders enjoy a range of benefits that provide special access including Sonoma County Wine Auction 2019. In addition to points, miles, cash back and other premium rewards offered by issuers, Visa Signature and Visa Infinite cardholders also enjoy perks such as 24/7 complimentary concierge services, access to the Visa Luxury Hotel Collection and exclusive offers related to fine wine and food, travel and sports. For more information on Visa Signature, Visa Infinite and other Visa® offerings, please visit Visa.com.

About Sonoma County Vintners Foundation

The Sonoma County Vintners Foundation provides support to our local community through philanthropy and charitable giving. Fundraising efforts have a direct impact in the areas of education, health and human services, the environment and arts and culture. The signature fundraising event, Sonoma County Wine Auction has been recognized as one of Wine Spectator’s Top Charity Wine Auctions in the United States. Learn more at sonomawine.com/foundation.

By Press Release

Napa County Summer Road Construction and Roundabouts

Get ready for a summer road construction season that will include such high-visibility projects as building three city of Napa roundabouts, repairing a bridge on Soscol Avenue and replacing an Upvalley Silverado Trail bridge.

The Napa Valley Transportation Authority (NVTA) Board of Directors last week heard presentations from Caltrans and Napa County on upcoming projects. Directors are local elected officials.

“Just a request for the patience of the motorists and users here in Napa,” said Kelly Hirschberg of Caltrans. “Because it does take a little time and sometimes it’s noisy and a little bit dusty.”

But the projects are needed, she said.

City of Napa roundabouts – A major summer construction job is creating three roundabouts at consecutive intersections—on First Street at the northbound Highway 29 exit, on First Street at California Boulevard and on California Boulevard at Second Street.

The $9.3 million project is being built by O.C. Jones & Sons. And it’s complex.

“Because of the complexity with all the local streets, this will require eight-stage construction,” Hirschberg said. “There will be eight different times they will be shifting traffic in a different direction.”

A Caltrans information sheet said the project is to last two years. But Chris Moulton of Caltrans told the NVTA Board of Directors that the roundabouts could be built by May 2020, with the contractor trying to combine some of the stages.

“You’ve just become a hero in Napa,” Calistoga Mayor and NVTA Board of Directors chairperson Chris Canning said.

Caltrans will send mailers to businesses and local residents on the project and will have a website with updates on traffic shifts, Moulton said.

The project is to start June 10th, city of Napa Deputy Public Works Director Eric Whan said on Monday. Caltrans is managing a cooperative project between the city and Caltrans.

Bottom line – people driving through this area this summer and beyond will see changing conditions as the project progresses.

“Construction is always difficult,” Whan said. “You just try to make it work the best you can.”

The city has posted a computer simulation on its website showing how traffic should flow once the roundabouts are completed. Go to https://bit.ly/2EkMlOV and scroll toward the bottom of the page to view it.

Tulocay Bridge on Soscol Avenue – This 1918 stone arch bridge on one of the city of Napa’s busiest streets needs corroded steel reinforcement and concrete chipping repaired. Tulocay Creek is located about a half-mile north of Imola Avenue on Napa’s Auto Row.

The $900,000, 80-day fix-it job by American Civil Constructors West Coast is to begin in mid-June. Traffic should keep flowing during the day, with one-way traffic and a flag-person possible at night.

Chris Moulton of Caltrans said Soscol Avenue at the bridge will be too narrow for pedestrians during construction. They can cross Tulocay Creek on the nearby Gasser property.

Conn Creek Bridge/Silverado Trail – The bridge over Conn Creek on busy Silverado Trail east of Rutherford is to be replaced, but Caltrans officials said the traffic will keep moving.

The existing bridge from the early 1970s has been damaged by creek scouring. Caltrans plans to reconstruct the bridge in two sections so one side is always available to carry traffic. Work is to extend through construction seasons.

St. Helena Mayor Geoff Ellsworth said he appreciates the work Caltrans is doing. He asked if traffic will be able to move through the area at its usual speed.

“That’s one of our main arteries,” Ellsworth said.

Two lanes will be open, but traffic might travel more slowly because some motorists look to see what is going on, Hirschberg said. Also, motorists might drive more slowly because of the constrained shoulders.

Ghilotti Construction will do the $7.5 million construction project, Hirschberg said.

Silverado Trail/Pratt Avenue – Napa County has its own Silverado Trail projects, and one is repairing a slide near St. Helena triggered by the winter 2017 storms.

A temporary fix in place involves a makeshift concrete barrier to block rocks that might otherwise tumble onto the road. This configuration required closing Pratt Avenue where the street meets Silverado Trail. Now comes what is meant to be the permanent solution.

The Napa County Board of Supervisors could on Tuesday award a $1.9 million contract to McCullough Construction Inc. of Arcata to start the project in June and finish in October. Workers are to build a 280-foot-long retaining wall with the height varying from five feet to 23 feet. They’ll backfill the slope to buttress the unstable hillside.

“Unfortunately, it’s a very complicated project that wouldn’t lend itself to working at night,” county Public Works Director Steven Lederer told the NVTA Board of Directors.

The county will prohibit work from 3 to 7 p.m. to avoid the afternoon rush hour. Other than that, workers will do as much work as possible behind the makeshift retaining wall. That won’t be possible all the time, because there’s not enough room for a big crane.

There may be times when only one lane is open on Silverado Trail with flagging, Lederer said.

Silverado Trail paving – Napa County plans to repave Silverado Trail from Yountville Cross Road to Skellenger Lane, a distance of three miles. Work is to start June 14 and end by Aug. 1, before crush.

The county will coordinate this Silverado Trail project with the Caltrans work on Conn Creek bridge, though the two projects aren’t really related, Lederer said. No work will be done from 3 to 7 p.m.

Capell Creek Bridge – This 1956 bridge on Highway 128 in the mountains between Lake Hennessey and Lake Berryessa will be replaced at a cost of $12 million.

A landslide has damaged the bridge. Gordon N. Ball, Inc. is the contractor that will replace the bridge and install 13 horizontal drains. A rented, steel module bridge will carry traffic during the two seasons of construction work.

“It will be one-way traffic control onto the temporary bridge that will be out there,” Hirschberg said.

Highway 121 – Storms of recent years have damaged the embankment on this rural highway west of Lake Berryessa near Moskowite Corner.

Granite Rock Co. will spend about 30 days repairing the embankment and improving drainage at a cost of $700,000. Hirschberg said rocks will be used to bolster the slope.

Because of environmental laws, work in a nearby creek for the project cannot begin until June 15, Hirschberg said.

BARRY EBERLING beberling@napanews.com

Top Priorities When Moving with Kids

According to the Pew Research Center, around 37% of U.S students will be going back to school soon and the rest have already started the new academic year. With school-aged children in your home, buying or selling a house can take on a whole different approach when it comes to finding the right size, location, school district, and more.

Recently, the 2019 Moving with Kids Report from the National Association of Realtors®(NAR) studied “the different purchasing habits as well as seller preferences during the home buying and selling process.” This is what they found:

When Purchasing a Home

The major difference between the homebuyers who have children and those who do not is the importance of the neighborhood. In fact, 53% said the quality of the school district is an important factor when purchasing a home, and 50% select neighborhoods by the convenience to the schools.

Buyers with children also purchase larger, detached single-family homes with 4 bedrooms and 2 full bathrooms at approximately 2,110 square feet.

Furthermore, 26% noted how childcare expenses delayed the home-buying process and forced additional compromises: 31% in the size of the home, 24% in the price, and 18% in the distance from work.

When Selling a Home

Of those polled, 23% of buyers with children sold their home “very urgently,” and 46% indicated “somewhat urgently, within a reasonable time frame.” Selling with urgency can pressure sellers to accept offers that are not in their favor. Lawrence Yun, Chief Economist at NAR explains,

“When buying or selling a home, exercising patience is beneficial, but in some cases – such as facing an upcoming school year or the outgrowing of a home – sellers find themselves rushed and forced to accept a less than ideal offer.”

For sellers with children, 21% want a real estate professional to help them sell the home within a specific time frame, 20% at a competitive price, and 19% to market their home to potential buyers.

Bottom Line

Buying or selling a home can be driven by different priorities when you are also raising a family. If you’re a seller with children and looking to relocate, contact a local real estate professional to help you navigate the process in the most reasonable time frame for you and your family. I am happy to help if you are in the Napa Valley or I can refer you to an experienced agent in a different area.

California Living Trusts...Should You Have One?

The quick answer is Yes if you have at least $150,000 in assets. The long answer gives you a little bit more detail as to what you should know about Living Trusts.

When you own property, have children or have a significant amount of assets, a will may not be sufficient for protecting your interests in the event of death. In these cases, you want a living trust that gives you more control over what happens following death or incapacitation and avoids the expensive process of probate.

What Is a Living Trust?

A living trust is a written legal document that “holds” your property and assets for you. It allows you, as the trustor, to retain control of your property and assets during your lifetime and ensures that they are managed in the way you want after your death or incapacity.

When you create a living trust, you transfer all of your assets into it. These include any real estate, bank accounts, stocks and insurance policies. Your property deeds get transferred to your trust, and the beneficiaries on any accounts get updated to your trust. These assets remain in your control during your lifetime, but a living trust gives clear instructions on what you want to happen upon your death or if you become too ill to manage them.

A living trust kicks in upon the death of one or more of the trustors. It includes provisions for who you want your property and assets to pass to upon your death, who will manage your assets, and how they will manage them. Those who stand to benefit from your trust are known as beneficiaries. The person who manages your trust is known as the trustee, or executor.

You can be both the trustor and trustee to your living will, so that you can manage your assets as long as you are able to. If you and your spouse create a family trust together, you can be co-trustees. That has the added benefit of assets and property automatically passing to your spouse in the event of your death or incapacity without any court probate. During probate, the court supervises the transfer of assets. This can be a lengthy process that doesn’t give beneficiaries quick access to any assets or money.

Under California living trust laws, you can also name one or more successor trustees to manage the trust when the original trustees are no longer able to. These can be other adults (often adult children), a corporate trustee, a professional executor or any combination of those. Whoever is named a trustee must hold and use the assets of your trust only for the benefit of any trust beneficiaries, which are most often your children and other family members.

A living trust is revocable. That means that it can be changed at any time during the life of the person or people who created it. Once one or both of the creators of the trust dies, it turns into an irrevocable trust that can no longer be changed. This is done to protect the interest of the party who is no longer living.

California living trust laws are included as part of California’s Probate Code. California Probate Code Section 15400 says that a trust is revocable unless expressly made irrevocable.

Benefits of a Living Trust

A living trust essentially gives you control when you no longer have any. A living trust allows you to make needed provisions for yourself and your family while you have the capacity to do so. You can allocate what money goes where, who gets what and who takes care of minor children.

There are many benefits to a living trust:

• A living trust makes funds and assets available more quickly than wills since it avoids the probate process.

• Assets included in your trust are distributed either upon death or if you are disabled or otherwise incapacitated.

• Living trusts don’t pass through probate, saving a lot of money for your beneficiaries.

• Since they don’t go through a court probate in which records are publicly available, you can have assets dispersed privately.

• You can appoint someone to manage assets and property held in your living trust.

If you have children, they are entitled to some inheritance after your death. With a living trust, you can choose someone to manage their inheritance until they turn 18 or at another age you choose.

California Living Trust Executor Responsibilities

It is very important to choose a competent trustee or executor for your living trust. Under California living trust laws, this person has the legal right to manage and control every asset in your trust. Because California living trust executor responsibilities are so important, you need to make sure the person you choose is someone you trust. You will need to provide access to your trust document and assets, any insurance policies and other important information.

It is up to you and any co-trustors who you choose as a trustee. It can be an adult child, a relative, a family friend, a business associate or any other adult you feel comfortable managing your assets. If there is nobody you know personally, you can have a professional executor manage your living trust.

Whoever you ultimately choose, California living trust executor responsibilities at death are the same:

• A trustee must follow instructions laid out in the living trust without any variation.

• A trustee must use the assets of the trust for their designated use only. The assets cannot be used for the trustee’s own benefit, unless explicitly stated in the trust.

• Trust assets must be kept separately and cannot be mixed with the trustee’s own assets. Separate checking and savings accounts must be maintained.

• A trustee must keep accurate records and report to beneficiaries as designated in the trust.

• A trustee must file needed tax returns and take care of any other financial requirements.

If you or another trustor become incapacitated, California living trust executor responsibilities are slightly different:

• The executor manages care of the incapacitated person, as well as any minors or dependents.

• The executor handles necessary business, including insurance coverage and disability benefits.

• The executor maintains accurate records and accounting for the trust.

When choosing someone to carry out the California living trust executor responsibilities, consider any conflicts of interest the person may have. Also consider how much time and energy she will have to devote to managing your assets.

There should be a stipulation in your living trust about how much to compensate the executor for the time spent managing your property and assets. It does not have to be an extravagant amount, but should be reasonable based on the complexity of the duties listed in your living trust.

How to Create a Living Trust

While you can go online and put together your own living trust, it’s best to work with an experienced estate planning attorney who can help make sure everything is done correctly. This can give you peace of mind, especially when you have kids who you want to make sure are protected.

When you create a living trust, you will go over the following information with your attorney:

• Beneficiaries for each of your assets, including your spouse, current and future children, other relatives, organizations and pets.

• Designated trustee or co-trustees and their responsibilities.

• All of your assets, along with a description and the value of each. These include tangible assets such as jewelry, cars and family heirlooms.

• How each of the assets should be distributed and to whom.

Do you still need a will if you have a living trust? Most estate planning attorneys in California are likely to say yes, but it’s good to have the conversation.

An estate planning attorney will walk you through the process to make sure you don’t forget to include anything. It’s helpful to go to your meeting prepared with a list of the needed information. Be sure to talk through anything you are confused about so that you don’t have to revisit it down the line.

Once you create the paperwork for a living trust and officially sign the document, you need to fund the trust. All titles and beneficiary designations should be changed to the trust. If you own a home or other property in California, you need to have the deed recorded in the name of the trust.

Certain assets allow you to name the trust as a contingent beneficiary instead. Your lawyer can help make sure your trust is properly funded and all beneficiary designations are correct for the purposes of a living trust.

In addition to a living trust, an estate planning attorney can help you create an advance healthcare directive, nominate a power of attorney in the event of illness or disability, choose guardians for your minor children and pets, and file new deeds for your real estate.

The cost of creating a living trust depends on the attorney you work with, the complexity of your trust and how much additional paperwork is involved. Generally, even if the cost of creating a living trust is expensive, it’s still less expensive than the costs needed for probate. It also gives you peace of mind that your family is taken care of if the unthinkable happens.

Do You Still Need a Will if You Have a Living Trust?

So, do you still need a will if you have a living trust? It’s often advised to have both a will and a living trust to ensure that all of your assets are protected. If you create a living trust, the type of will you need is known as a “pour-over will.”

A pour-over will pushes assets not previously transferred to the trust while you were alive to the ownership of the trust upon your death. In this way, you essentially make your trust the sole beneficiary of your estate. The assets previously placed there or those placed there by your will are covered by the same protections you intended when you set up the trust.

Without a pour-over will, any assets not included in your living trust, or that don’t pass by beneficiary designations, are subject to probate if they are more than $150,000. It also means that those assets may go to people you didn’t intend since they would pass under state inheritance law instead of per your explicit instructions.

The benefit of having a living trust vs. a will is that assets can be distributed without court supervision or approval, as would need to happen in probate. The trustee can automatically use your assets to pay any debts and taxes and then distribute what is left per your explicit instructions.

Whether you opt to have both a living trust and will or one or the other, you should always make sure the document is up to date. This is especially true if you experience a life-changing event such as marriage, birth of a child, acquisition of new real estate or divorce. It’s best to be as prepared as possible when it comes to passing on and managing your estate.

Regardless, please make sure to reach out to an estate planning attorney you trust to help decide the best course of action.

Experts Predict a Strong Housing Market for the Rest of 2019

We’re in the back half of the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the predictions are for the remainder of 2019.

Here’s what some of the experts have to say:

Ralph McLaughlin, Deputy Chief Economist for CoreLogic

“We see the cooldown flattening or even reversing course in the coming months and expect the housing market to continue coming into balance. In the meantime, buyers are likely claiming some ground from what has been seller’s territory over the past few years. If mortgage rates stay low, wages continue to grow, and inventory picks up, we can expect the U.S. housing market to further stabilize throughout the remainder of the year.”

Lawrence Yun, Chief Economist at NAR

“We expect the second half of year will be notably better than the first half in terms of home sales, mainly because of lower mortgage rates.”

Freddie Mac

“The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months…The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity.”

Bottom Line

The housing market will be strong for the rest of 2019. If you’d like to know more about your specific market, contact a local real estate professional to find out what’s happening in your area.

September is California Wine Month: Come Visit!

September is California Wine Month—the perfect time to experience the annual harvest season first hand. Enjoy special tastings, festivals, concerts, wine and food offerings and more throughout the state. Celebrate all that California’s vintners and growers bring to our lifestyle, economy and culinary pleasures.

Explore the events happening all month long and see the special poster offer, or download a PDF version of the full event list here.

Hope to see you soon!