Chris – Page 11 – OC Neighborhoods

Homeowners Insurance for California Fires

Fires burned forests, dry brush and timber pretty much around-the-clock in 2017, and the year closed with record large fires in Southern California that scorched areas well into 2018.

Jennifer Jones, a spokesperson for the National Interagency Fire Center, said officials no longer talk about “fire seasons anymore instead it’s called fire years”.

In July, people in Redding, California, were sent scrambling for their lives and belongings after the Carr Fire erupted and sent a 100-foot-high “wall of flame” through the city. The fire has already spread to over 207,000 acres, jumped over the Sacramento River, and is 98 percent contained as of Thursday Aug 30th.

In general, homeowners insurance helps pay for damage to your home and personal belongings due to a wildfire. Basic homeowners policies tend to cover you against specific dangers, which includes fire, but the level of protection may differ based on your location and policy.

In some cases, if the area you live in is prone to wildfires, you could find that homeowners insurance policies won’t covers fires or the premium is very high.

If you believe your home is susceptible, you’ll want to be sure that you know if wildfire damage is included in your homeowners insurance policy and if so, how much coverage you have.

Excluded Circumstances

Usually your homeowners insurance policy will protect you against accidental fires, but it won’t protect against any loss if you deliberately put your home ablaze. If a nuclear bomb blows up your home, you will not be covered, as homeowners policies do not insure against nuclear disasters. If a foreign army invades the U.S. and burns your home to the ground, your insurer will not be able to help with coverage. Basically, any act of war that results in a loss, you are out of luck. However, in nearly every other incident, you’re protected.

Since erupting on July 13, the Ferguson Fire has burned over 96,900 acres, which is an area around one-half the size of New York City. The wildfire is close to Yosemite National Park and even closed the park down. As of Aug. 18, the fire is 100 percent contained but took the lives of two brave firefighters, along with 19 injuries and 10 structures were destroyed.

Ranch Fire (Mendocino Complex)
Acreage: 459,102 acres
Containment: 93%
Damage:157 residences destroyed

Holy Fire
Acreage: 23,136 acres
Containment: 93%
Damage:18 structures destroyed
12 Single Family Homes were Destroyed in Orange County
6 Single Homes were Destroyed in Riverside County
Fire began:1:21 p.m. Aug. 7, 2018 in Holy Jim Canyon in Orange County

Valley Fire (San Bernardino County)
Acreage:1,350 acres
Containment:82%
Fire began:1:29 p.m. July 6, 2018

1. mercurynews.com/2018/01/04/report-homeowner-insurance-more-difficult-to-get-after-devastating-wildfires

2. fire.ca.gov/current_incidents/incidentdetails/Index/2175

How to Get a Home in Orange County for Less than Market Value

Buying a home under market value is not the same as purchasing a home at a discounted price. That just means that the seller choose for whatever reason to sell the home for less than the asking price. Just because the homeowner sells their home for less than the asking price does not mean that they are selling a home below market value.

Market value is the price that’s put on a home using the most recent sales data of comparable homes in the area by an appraiser or a real estate agent. This involves reviewing homes that have similar size in living square footage, and a similar amount of bedrooms and bathrooms. However, you need to filter out properties in bad condition or that were distressed sales or were sold through foreclosure.

A lot of homeowners who use a real estate agent will list their homes close to market value. This is due to the fact that the real estate agent has completed the necessary research to determine what the accepted value is for similar properties in the neighborhood.

Real estate agents use comparable home sales that have occurred in the past 60 to 90 days as well as active listings, ideally within the same neighborhood to establish how much your property should list for. Additional considerations is given to when the area is a buyers or seller’s market.

There can be plenty of reasons why someone would list their home below market value. Every so often homeowners, may not be aware what the actual market value of their home is, and simply underestimate it when they place it up for sale. This can happen in more cases with “For Sale By Owners”.

Additional reasons why a home is listed below its true market value is because it’s being sold through an estate sale. In normal cases, it’s the sale of property whose owner has deceased. The home typically needs to be updated and renovated.

Usually the family or heirs want to sell the possessions from the inheritance at a price that will attract a quick sale. They simply don’t have the time to wait months for a sale as they are looking to move on and will list their home under market value.

Another popular means to find homes to be purchased below market value are those that have been foreclosed on.

These properties are owned by the lender or bank. They are also known as REO’s (real estate owned homes), and often have asking prices below market value so the bank can get rid of the property as soon as possible. Many times, the price reflects the condition these properties are in as they tend to require a great deal of work.

Traditionally, for those who bought an REO, they end up with a home that needed some work but it paid off at a 2:1 ratio or better in terms of equity appreciation.
For example, this means the renovation or repair costs were maybe $30,000 but the gained value was $60,000. Speak with a licensed contractor or professional who can help you determine what costs you will probably have to bring the home up to satisfactory condition.

The government also offers foreclosed homes for sale at an attractive price. They are known as HUD Homes and are on the government’s books because the previous homeowner defaulted on their loan had an FHA mortgage. These homes are sold by a licensed agent through an online bidding system.

Bids are sealed so that other buyers cannot see how much you are bidding. It is illegal to buy a HUD home stating you will be an owner occupant but in actuality it will be used as an investment property.

HUD allows homebuyers who want to live in the home to bid on properties that qualify for FHA loans during the first 15 days. This time period is restricted for only bids by owner-occupants. If the home is not in acceptable condition per FHA guidelines, the time period is reduced to just five days for owner-occupied bids. it’s worth noting that during the inspection phase, prospective buyers are required to pay for all utilities charged.

How to Take Care of Your Orange County Lawn without Consuming Too Much

In California, over 50 percent of residential water usage takes place outdoors. A typical lawn takes in about 57 inches of rain per year, based on data from the Association of California Water Agencies. No matter if your home has a little yard in Laguna Beach or a full acre in San Juan Capistrano, the goal is to keep your lawn lush and green — so how can that be accomplished during the dry weather months in Southern California?

The Orange County Water District (OCWD) agrees that a person’s lawn is able to stay green and in good condition all year long with these simple economically proven tips.

1) Don’t water your lawn. This is probably the opposite of what you think is necessary, but the grass will just die if your area is suffering from a drought. If your HOA mandates you to water your lawn—water only when you see evidence of drought stress; a continuous loss of water in the soil due to atmospheric conditions which causes the grass to bend at the top. If you notice that happening, immediate irrigation is needed.

2) Make sure the sprinkler system is working efficiently. The majority of sprinkler systems come with smart timers to adjust the time and frequency of watering. To optimize it even more, adjust the flow rate and spray patterns so that water isn’t being wasted sue to over-spray or under-spray that results in dry spots. Moreover, make sure the nozzles don’t produce drops that are too large or too small.

3) Collect rainwater with rain barrels. Back in 2015, rain barrels bought for $85, had a $75 rebate from Municipal Water District of Orange County, so that made the final cost at $10 per barrel with a limit of four (4) barrels per household to get the rebate¹. So, you may be able to still buy them at a deep discount. When the barrel is full of rainwater, distribute it over your lawn using a hose with a efficient nozzle or hook it up to your sprinkler system.

4) Recycle indoor water. Water your lawn with water that’s been reclaimed from inside your home, also known as gray water. Put a bucket in the shower and sink to capture excess water. This will decrease your water consumption, and by watering your trees and plants with gray water, this can also help cool your home year after year, another way to conserve natural resources.

5) Start to compost. Place vegetable and leaf remnants into an outside bin. You can also include lawn clippings, and cardboard. Do not compost weeds, ivy, diseased plants, or acidic citrus fruit. Once you’ve done this with care regularly and it’s loaded up, you can sprinkle some throughout your lawn to keep it nourished. By adding compost to your landscape, it increases the fertileness of your soil and its capacity to hold water by as much as 7 times.

6) Find out what the weather forecast will be before cutting your lawn. The best time to cut your lawn is when the chance for rain is high in the next two days.

7) Make sure your lawnmower blade is at high setting to keep the grass relatively tall. You want the grass to remain somewhat tall so it can provide shade and protection for the ground in order to preserve water. When your grass is too short, the lawn can quickly dry out due to the fact there isn’t any shade coverage.

8) Use a lawnmower that mulches. A lawnmower that takes in grass and chops it up into small pieces produces an excellent mulch that’s sprinkled over the lawn while it’s being mowed. This provides nutrients for your lawn and soil.

9) Plant shade trees for the long-term. Once your shade trees are tall, they can obstruct most of the sunlight from punishing your lawn during the dry periods with high temps and Santa Ana winds. The result will be lower water consumption and needing to cut your lawn less. Make sure to plant shade trees where the sun sets in the afternoon when it is at its maximum temperature.

1. https://huntingtonbeachca.gov/announcements/announcement.cfm?id=795

Orange County Real Estate in the Next 2 Years: Up or Down?

The housing markets of Los Angeles, Orange County, San Diego, San Jose, San Francisco and Sacramento are bursting at the seams with an overall price growth rate of 10% annually since 2012.

The most recent forecasts for the Orange County housing market indicates that home prices will continue to rise in 2018 & 2019, attributable to low inventory and strong demand in both North and South County.

Orange County Housing Market During The Last Two Years
In 2016, the median home price for a single family home in Orange County went up by four percent from 2015. The same four-percent increase happened in 2017 too. In mid-2018, the median home value in Orange County is $761,700, based on data from multiple sources. In comparison to June 2007, Orange County’s median home selling price touched $645,000 — in that crazy period of high-risk lending and home buying frenzy.

Avg. Home Price 3/2018 MtM Yoy

Orange County $824,000 2.4 8.5

*MtM – Month to month percentage change
YoY – Year over year percent change

California housing market to Modestly Rise in 2018
Inventory is partially responsible for the increase in home values. There’s more than enough demand from prospective buyers, but there’s a lack of homes for sale to satisfy that demand. Home buyers are fiercely competing for low inventory, especially for homes priced at the lower end where multiple offers thrive.

A Two-Month Supply of Homes for Sale
From a home inventory perspective, Orange County has 2-month supply of homes for sale as of May 2018. That’s far lower than the 5- to 6-month inventory level that real estate economists deem a “balanced” housing market. However, the two-month supply is a 10 percent increase from a year ago.

Perhaps the NIMBY’s (Not in my back yard) are correct in that there is enough inventory. There’s no need to build in or near ecologically sensitive areas.

Home Affordability
Yes, it can be challenging for the average household to afford an Orange County home. According to data from the Orange County Register, it was worse in 2007. A comparison shows 21 percent of Orange County household are able to comfortably purchase a home this spring vs. just 12 percent in 2007.

Another statistic shows that 14 percent of homes were considered “affordable” in 2017 vs. 4.4 percent a decade ago. Keep in mind, interest rates are 2.8 percentage points less than 2007 and Orange County median household incomes are 12 percent higher!

As a home buyer in a market with strong demand, you’ll need to put forth your best possible effort when bidding in this market. Start the process of getting pre-approved for a mortgage, researching the neighborhood where you want to live, and hire a real estate agent to help you successfully buy a home in this tight, highly competitive market.

OC Neighborhood Spotlight: Dana Point

Dana Point, which is located in South Orange County west of San Juan Capistrano, offers a short commute to Irvine and Newport Beach while providing beautiful views of the ocean than other South Orange County’s neighborhoods east of the 5 freeway.

Dana Point Boundaries
Located off Interstate 5, Dana Point is bordered by the beaches and highway 1 to the southwest, Del Obispo to the east, Pacific Island Drive and Camino Del Avion to the north.

Dana Point is composed of nine smaller neighborhoods:

Monarch Beach
Capistrano Beach
Lantern District
Del Obispo
Dana Hills
Harbor
Three Arch Bay

Average Home Prices:
Prices range from $200,000 for a condo on up to $40,000,000 for a luxury home on the beach.

A Quick History Guide
Established as a city in 1989, named after Richard Henry Dana Jr. (1815-1882), a Harvard-educated lawyer. Dana Point has a little over 34,000 residents, and is distinguished by roughly seven miles of its famous coastal bluffs and enchanting rolling hills beside the Pacific Ocean.

Attractions
Activities include Whale and Dolphin Watching, Doheny State Beach, Salt Creek Beach Park, Farmers Market on Saturdays, Illumiocean, Parasailing, and more. The Irvine Spectrum is just a 20-minute drive.

Where to Eat in Dana Point
Throughout South Orange County there’s plenty of great choices you can comfortably get to from Dana Point. You’ll find your highly rated local pizza places such as Beach Harbor and Angelina’s, and Salt Creek Grille and the Harbor Grill, along with a range of other unique eateries that will have you returning to sample each item on the menu.

The Little Kitchen Asian Café
A top-quality healthy Asian cuisine that has a strong rating and long list of satisfied customers throughout South Orange County. Foods are made from scratch by top rated chefs and their pot stickers to die for.

Luciana’s Ristorante
A cozy European styled decor serving the community for over 30 years with traditional Italian dishes like Antipasto, Salads, Fettuccine, Bruschetta, Lasagna, Shrimp Scampi, and so on.

A’s Burgers
Located on Pacific Coast Highway, go grab a good burger, onion or zucchini rings along with a drink. Many claim that the burger size is a good-size and the price is right as well.