OC Neighborhoods – Page 10 – Connecting Locals and Visitors

Quick Guide to Trouble-Free Condo Buying

Purchasing a condominium comes with some advantages such as normally residing closer to main areas of the city, better value for the price than owning a home, and fewer problems about maintaining the exterior of the property.

Distinctions of Owning a Condo and a Home
Owning a condo is somewhere in the middle of owning a home and renting an apartment. you have neighboring tenants with shared walls or floors but you actually own the unit.

Then again, as a condo owner, you have to rely on the condo association and other owners to deal with common area issues like the roof, stairwells, elevators, parking garage, and any shared facilities.

A strong condo association is what you’ll want to have, or your experience may not be favorable. The following are items that you should research with your realtor before writing a purchase offer:• How much are the condo fees and what specifically do the include?
•      Is the community professionally managed or do the owners manage?
•          Are there any planned special assessments and if so how much?
•          What are the financial reserves and is it adequate?
•           Are there any owners late on their HOA dues and if yes how many?
•           How many units are currently owner occupied and how many are rented?
•           What are the restrictions on renting condos?
•           Are there any pending legal actions against the complex?
•           What is the parking policy? Do I own my space? Is there guest parking?

Research The Condo Association
Among the best advice for buying a condo is knowing the financial soundness of the community. The association is responsible for keeping everything working in your community as well as rules and regulations for the owners to obey.

Learn Who Your Neighbors Are
Everyone has different needs with regards to a relaxed and wonderful home. If you are a hard working professional, living next door to a condo with first and second year college students is probably a deal breaker.

If you are in your retirement years, perhaps living next to those close to you age group is preferable than one with a high-school student who practices music at home. It is better to be safe than sorry later on so you have to do your proper research.

Consider the Neighborhood
While you may have fallen in love with the condo’s gorgeous exterior architecture, a spectacular kitchen, or the way the floor plan is so well set up. You cannot forget the significance of the surrounding neighborhood.

The kind of questions you should be considering include:
• How far is the community from the 5, 405 freeways and 73 Toll Road?
• What major conveniences are nearby that I need?
• Is there a lot of crime in the area?
• Will noise from the street, train, or anything else be a factor?
• How are the local schools for possible resale later on?

Property Upkeep
Discuss how maintenance is handled with the association, because you don’t want to spend the next few years (or more) frustrated by the lack of maintenance.

Exterior
Another gray area can include roofs and windows. These are obviously costly repair items that you will want to know who is responsible for, especially if they are nearing their life expectancy.

Get a 2 or 3-bedroom For Best Resale Value
Although you may only need a studio or one-bedroom, two and thee-bedrooms are much easier to sell and fetch better resale values. In addition, you may be able to rent the extra bedroom subject to the HOA’s rental policies for owners.

Is The Condo Complex FHA Approved?
Learning whether the condo complex you are interested in purchasing is FHA approved is very important. The reason why is because FHA loans let a qualified borrower only have to bring in a 3.5% down payment. This is a great popular program for first-time home buyers who don’t have more funds available.

Storage Space is Important
Storage is a typical concern for condo owners. Figure out what your storage needs are so it will not be an issue after you buy a condo. Some condominiums may come with your individual garages, shared garage or offer storage areas for each unit.

Views
Whenever possible, a good condo purchase is one that has a respectable view. More people tend to like having a view which also makes it much easier to sell a condo. It is advisable to stay away from condo with views of garbage area.

Orange County’s Most Affordable Neighborhoods

Orange County’s Neighborhoods that are the most affordable with decent commutes to the work hub of Irvine.

Trying to find an affordable place to live in Orange County has become gradually harder as of late even if year over year sales have declined. According to Redfin the average sale price for a single-family home in Orange County is $690,000. Although, there are still areas in Orange County where you can buy a home for a reasonable price and still commute to work to its work hub, Irvine.

Some of these areas are scheduled for redevelopment, so buying a home soon could become a smart investment choice. The following are some of Orange County’s most affordable neighborhoods, based on recent data of the average home sales price. Some of these communities are true Orange County gems!

Rancho Santa Margarita
Average Sales Price: $604,834
Median Home Value: $660,700

Rancho Santa Margarita 92688: $575,000 median, down 7.3 percent. (OC Register Nov 26, 2018)

A master-planned community with a population of approximately 50,000 residents with a very high median household income of $102,975. It offers enchanting scenery, safe neighborhoods, newer homes, and a great school district. The city’s local businesses have been a big part of the city’s growth dating back to 1999.

Whether you’re a resident of esteemed neighborhoods like Dove Canyon, Melinda Heights, Rancho Cielo, or any of the other neighborhoods, you’ll find single family homes and condos available.

Rancho Santa Margarita always a variety of festivals, concerts, and other family-friendly activities going on that make living there really enjoyable. Residents use the 241 and 133 toll roads or carpool and use the HOV lanes to and from Irvine.

Aliso Viejo
Average Sales Price: $630,451
Median home value in Aliso Viejo is $632,229

Features a lot of newer built homes with interesting architecture and scenic views. Bordered by Laguna Beach, Laguna Woods, Laguna Niguel and Laguna Hills, Aliso Viejo is a very nice neighborhood with homes enabling buyers to purchase at a very attractive price tag.

Santa Ana
Average Home Price: $566,474
Median Home Value: $549,900

Santa Ana is the underdog that’s seen major improvement over the past year. It was once considered more of a rough area with a long road ahead, but the turn-around has been dramatic and fast. Young people have put a lot of energy into turning this section of the area around, and the ripple effect has been seen across the city. Its additions of hip, new restaurants and pubs and, especially, their contributions to the community with their artistic endeavors will continue to make this area popular for both students and young professionals for years to come.

The French Park, Floral Park, and Park Santiago neighborhoods

Garden Grove
Average Sales Price: $604,834
Median Home Value: $615,100

Garden Grove’s neighborhood known as Little Saigon, has the largest Vietnamese community in the US. This translates to some of the best Vietnamese restaurants in the country.

A part of the city is just 1 mile away from Disneyland, seven miles from Knott’s Berry Farm, only nine miles to the local beaches and 10 miles to Irvine and John Wayne Airport. Another Garden Grove popular area “Little Korea” runs east to west on Garden Grove Blvd. mainly between Brookhurst Street and Harbor Blvd.

This wonderful city is a great place to call home with all the nearby entertainment, eateries, festivals, and events.

The city has an array of home choices from single-family home to condos and townhomes, and manufactured homes. With this variety also comes a range in price. Home appreciation since 2008 to 2018, has been approximately 8% annually.

The median home price in southwestern Garden Grove zip code 92845 is $673,500. Yet that is still good news for home buyers, as it’s below the $726,525 FHA and conforming loan limits. This means borrowers may qualify for a 3.5-5% down financing.

Lake Forest
Average Sales Price: $604,834
Median Home Value: $718,900

Lake Forest is located off Lake Forest Drive and Bake Parkway, where the 5 and 405 freeways split going north

The city is full of young professionals, families, coffee shops, highly-rated public schools, and features over twenty-six public parks. Among them is the Regional Wilderness Park which offers a wide variety of outdoor recreation the entire year including hiking, jogging, swimming, biking, boating, and basketball.

Homeowners are very satisfied they live in a fun and safe area with low property taxes and varied architectural styles. For residents who live very close to the 5 freeway in Lake Forest or Mission Viejo, you can be in Irvine in 15-minutes or less as long if the brief stretch of freeway is not too congested.

Tustin
Median Home Value:$720,500 ** Zillow
Median Sales Price: $678,750 ** Trulia

Tustin is located north of Irvine and east of Santa Ana is referred to as the “City of Trees” thanks to the tree-lined streets seen throughout the city. The city has highly rated public schools in North Tustin and the foothills. Architecture tends to be Contemporary, Ranch, European, Tuscan, and Mediterranean styles.

Westminster
Average Sales Price: $604,834
Median Home Value: $660,700

Another leading city with an affordable home values compared to other OC cities, Westminster has a fairly stable housing market. It has many local conveniences. With its close proximity to the LA metropolitan area and Little Saigon, Westminster offers great fun for families.

Popular neighborhoods include Bishop Place, Boulevard Gardens, Civic Center, Del Prado Bolsa, Edinger, Garden Grove, Green Lantern Village, Huntington Manor, Midway City, North Huntington Center, Smeltzer,Windjammer, Westminster, Westminster Abbey, and The Pointe.

Although not as close to the 405 freeway, additional values and deals can be found in adjacent cities such as Cypress, La Palma, West Anaheim, and southern part of Buena Park.

As Orange County Housing Sales Slow, Will Sellers Pay Buyer Closing Costs Again?

During recent months, there’s been various reports and data that indicate a slowing trend in the Orange County housing market. The reason is a larger supply of homes have been listed by agents and even for sale by owners. Sellers dropping their asking price is becoming more typical. The result is home prices are still increasing but at a slower rate than during the years of 2012 through 2016.

Another trend that tends to occur when this situation happens is that home sellers in Orange County are more willing to pay some or all of the buyer closing costs.

Will ‘Sellers Concessions’ Return in the Near Future?
In a real estate market where there are multiple offers or when properties are under contract quickly seller concessions or contributions are uncommon.

The housing market in Orange County has been a slow fractional decline in the last couple of years.

In a buyer’s market, eager homeowners are more amenable to cover the buyer’s closing costs for the simple fact that they want the home off their hands. Nowadays, they will consider all offers even the one with the weak financing and the contingencies included.

As the data suggests, housing demand has dropped off a bit. And while inventory is still a buzz word among agents in certain parts of Orange County, homes are remaining active (not under contract) longer today than the last couple of years (on average). Price reductions are commonplace in the Orange County housing market.

Lowering the list price is among the numerous strategies sellers utilize to improve the odds of selling their homes. Offering to put money in to help with the buyer’s closing costs is an additional solution.

The majority of mortgage programs offered to borrowers today allow sellers to contribute a specific amount of money to be applied to the buyer’s closing costs. In some cases, homeowners apply this method to bring in more offers, simply to sell their home faster.

Changes in the Orange County Housing Market
These type of seller contributions have been unheard of during the past few years, due to the fact that the market mostly favored sellers than buyers. However, there is apparently a gradual shift occurring in the Orange County housing market. It’s logical to think that a growing number of sellers will begin to contribute to the buyer’s closing costs to entice buyers, especially if the homes are not getting any offers.

A November 2018 press release from the Southern California Multiple Listing Service stated:
“A lot of sellers are sensing the change. Prolonged times to get under contract make sellers stressed about a quick sale,’ he explained. Additionally, it said, brokers are reporting some sellers’ pricing is still accommodative ‘despite a price decrease as buyers capitalize on the seller’s motivation to get their home sold.’”

Home-price appreciation is another sign that the Orange County housing market is at long last beginning to slow down. There was a period when the median home value in the area was going up by double digits annually each year. Nonetheless price growth has decreased somewhat.

As a matter of fact, a recent housing report forecasted that home values in the Orange County would rise somewhere between 1% and 2% during 2019. That’s a huge difference from the ten-percent plus price appreciation that homeowners and prospective buyers experienced through 2016 and 2017. The slowdown in price is probably due to several unique factors, such as the ability to afford for some potential home buyers.

The main takeaway is that the Orange County housing market in late 2018 is changing from two- to- three years ago. Sellers understand this aspect and are adjusting heir method of selling and marketing their home.

Prediction: Orange County Buyers May Have More Home Inventory in 2019

Some of the major issues on the minds of Orange County home buyers are what the real estate market in Orange County be in 2019, will the lack of homes improve, and will the competition still be fierce as the past few years?

Orange County Housing Market Could Have More Inventory in 2019
Recent forecasts suggest that home prices will keep climbing in Orange County throughout 2019, though at a slower pace than in previous years.

The prospect of rising prices is basically a continuation of the status quo. Home values in the area have been climbing steadily so for years. So it’s no surprise to see predictions calling for a continuation of that trend in 2019.

Strong housing demand has driven the entire California housing market in 2018 and into the future. A housing crash that many millenials and working poor are longing for is unlikely to happen. In fact, with the added economic activity created by housing construction and larger households, increasing price pressure remains.

But the biggest change happening within the Orange County housing market right now has to do with inventory. For the past few years, the city has experienced a severe shortage of homes for sale. That’s partly why prices have risen so fast. But a series of new reports point to significant inventory growth within the Orange County-area real estate market.

The California Association of Realtors (CAR) predicts a moderate decrease in existing single-family home sales of 3.3 percent next year to 396,800 units sold. CAR sees a slower market with homeowners hanging onto their homes. CAR believes that will subdue sales throughout 2019 along with the pressure of rising interest rates in the coming years.

Orange County’s homeownership rate peaked in 2007 at a rate of 62.7% and has decreased ever since. The most recent homeownership data reports a 56.7% homeownership rate in Orange County. (source: First Tuesday).

Real estate data provider CoreLogic reported that August home sales were down from year-ago levels in all six Southern California counties. Orange County, the region’s most expensive housing market, had the largest decrease. Home sales transactions in were down by 10.9 percent, while San Diego County had an 8.9 percent fall and L.A. County declined by 8.5 percent.

Inventory Showing Sign of Improvement?
The inventory of listed homes increased by 91 since October 15th. Listings are taking on average 45 more days to sell. Trulia reports that inventory in Orange County increased by 20.7 percent fromQ3 of 2017.

It’s been reported that many home buyers are on the sidelines simply waiting due to yearly price increases. With a decreasing pool of buyers, sellers are reducing their asking prices. Approximately 40 percent of California home sellers lowered their asking prices in August. The average price cut for sellers was 4.3 percent.

CAR reported that twenty-nine percent of home sellers this past spring moved out of California, an increase from 19 percent in 2013. Over a third of Southern California home buyers moved to more affordable counties which translates to relocating inland, to the Inland Empire, or they’re going to other Western states such as Arizona, Nevada, and Colorado.

In 2019, people looking to buy a home in Orange County should have a slightly higher inventory to choose from. That’s a positive sign towards the goal of a balanced market. However, overall the housing market will continue to have above average demand for the foreseeable future.

Home Prices Still Rising But Slower
Recent forecasts for home prices in Orange County for 2019 indicate that home prices will continue climbing over the coming months. The same goes for California as a whole.

Related: Orange County vs. Los Angeles home prices
Disclaimer: This article contains data and forecasts provided by third parties outside of our company. Housing and economic forecasts should be regarded as predictions, not a sure thing. Information provided is deemed reliable but not guaranteed.

How to Challenge a Low Home Appraisal in Orange County

In a seller’s market, scenarios with multiple offer commonly increase the purchase price more than any comparable homes sold in the neighborhood. This explains why in those situations many sellers are concerned their sales price may be affected by a low appraisal. In a buyer’s market, when prices are dropping, sellers have anxiety that the appraisal will come in low.

As of Sept. 6, market time to sell a home in Orange County analyzed by the Southern California News Group reached 98 days vs. 64 in 2017 and an average 76 days from 2012-2017. With this metric exceeding 90 days, by ReportsOnHousing’s logic, the conditions for a “seller’s market,” no longer exist. It has become a more balanced market in relation to supply and demand.

A low appraisal can be the result of one of the following:

Declining home values due to a buyer’s market; a larger inventory of homes with few buyers.

Neighborhood declines due to a large amount of foreclosed homes or short sales

Seller or agent priced the home too high

A newbie appraiser who failed to recognize local influences on value.

Appraiser did not consider pending home sales, which may have warranted higher value

Appraiser used comparable sales from the wrong neighborhoods. Example; Laguna Beach and Mission Viejo or San Juan Capistrano and Dana Point.

Sometimes when an appraisal is performed, mistakes take place, which provides you the opportunity to correct them. Here are seven methods to dispute a low home appraisal:

Request a Copy of the Appraisal Report
Seller don’t automatically get to see or review the appraisal inspection report unless you request it. Federal law allows the mortgage lender to provide a copy of the report to only the buyer (or person paying for it), based on information from the Bureau of Consumer Financial Protection. In order to get a copy, you should contact the buyer’s agent or buyer if there is no agent.

Examine the Details of the Report
Errors happen and can be very simple yet obvious mistakes. As an example, the appraiser might have checked the box for two bathrooms versus three, the actual number, or not give you value for double pane windows when all the other comps were given value. Check the data and if you find a wrong data point it out and fight it.

Provide Updated Comps
The appraiser will rely on recent local comparable properties sales data to value your property. It’s totally possible that a home can increase in value after it was appraised. Get your real estate agent involved and do some digging to find out if this holds true for your home.

Make Sure You Have Permits
If you made improvements such as a bonus room for additional living space but failed to get a building permit, most appraisers will not give you value for this. Keep detailed records of permits you have from the county or city for inconsistencies.

Get Your Real Estate Agent to Meet With the Appraiser
Make sure your agent is fully prepared with the comparable sales and listings and is aware of any improvements to your property that warrant your home’s valuation. If the realtor and appraiser are using different properties for valuation, sometimes the final appraised value will be detrimentally different as well.

Contest an Appraiser Who Doesn’t Know the Area
Every neighborhood and community has their own set of characteristics, which is why it’s very important your appraiser is familiar with your specific area. If an appraiser lives 60 to 100 miles out of the area, he or she may not be the best person to determine your home’s value. Inquire with the buyer’s agent about this fact.

Renegotiate the Contract Price
If the seller really needs to close on this home to buy another, sometimes they will become more flexible on the buyer not paying the whole difference in value.

An example, is say the appraisal value difference is $15,000, a seller may agree to accept $7,400 in cash and lower the price by $7,500. Or if there’s a listing agent, they reduce their commission a little to facilitate the deal closing.

Buyer May Cancel the Transaction
A lot of purchase contracts include a loan contingency and appraisal contingency clause. If the appraisal comes in low or if the buyer fails to qualify for a mortgage to buy the property at the agreed-upon terms in the contract, the buyer can cancel the contract and get their earnest money deposit back. So, you may want to have a flexible seller before the buyer starts thinking of cancelling.