My Experiences

Over the years I’ve had so many interesting and rewarding experiences selling real estate in Orange County California. I want to share some of them with you.

In the beginning, when I was living in Fullerton and also enjoying a beach house on Balboa Peninsula, in Newport Beach, I worked with a small local real estate agency. Since I had school- aged children, my time as a real estate agent had to be scheduled around family life. My broker was an understanding and helpful man who was comfortable with my situation.

I found real estate to be an exciting challenge. Fortunately I knew quite a few people who were in various stages of planning their move from one home to another in Orange County. From the beginning I learned to listen carefully to what my clients were saying about their circumstances and goals, which often led to showing them alternative housing choices, sometimes in a different community that could be a better match for their family or work life.

For example, couples often live and work in different parts of Orange County or need easy access to LA and certainly want to avoid difficult, time-consuming commutes. My familiarity with most of the communities in Orange County and driving conditions in and between them has been a definite advantage for my clients over the years.

I usually ask my clients to let me know about the addresses of properties that interest them. Even if these properties are not on the market, I contact the owners to see if they have any interest in selling. When similar properties come on the market, I preview them so that I understand what they really have to offer. Pictures of properties in websites on the Internet can be very misleading.

If you are curious about real estate in any community or neighborhood, please contact me for ideas and suggestions at lidoislander@yahoo.com or call 949 300-1549.

A Very Special Street

One of the highlights of Newport Beach and Costa Mesa is 17th St., a cross street between Newport Blvd. and Dover Drive, that offers an exceptional variety of shopping and services. One block west of Newport Blvd. is Trader Joe’s, loved by all for its fresh, healthy, well-priced food and other special items…and its friendly, helpful, energetic staff. (I also really like the Trader Joe’s in the Crystal Cove Promenade shopping center, where seafood lovers also will find a Bear Flag Fish Co. store and café.)

Just on the other side of Newport Blvd. is Santa Monica Seafood Market & Café. In addition to an excellent selection of the highest quality fish, the café (serving wine & beer) and its oyster bar has become very popular.

Nearby, somewhat hidden off Newport Blvd., is an excellent Xpress Urgent Care facility where (no appointments needed) Dr. Noman professionally handles emergency medical needs. It’s very reassuring to know that, when necessary to diagnose or treat a medical problem, I can dash up to Xpress Urgent Care and see Dr. Noman. Across 17th St., adjacent to Orange St., Rite Aid pharmacy’s James Nguyen will provide outstanding professional assistance.

Just a few doors away in the same strip center on 17th St., Sprouts Farmers Market sells high quality meats and organic produce, tasty sandwiches & deli, and other quality food, at very fair prices. And the selection of breads they bake in-house is wonderful! Staples also is in the same strip center.

Continuing on 17th St. to Santa Ana St., tucked into the strip mall on your left is Celestinos with an exceptionally good selection of meats and some of the nicest people in the world behind the counter. A few doors away is “Where’s the Party?” which offers a great selection of products needs from printed stationary to decorations for all kinds of events.

On the same side of 17th St., you can’t miss the big Ralphs that is only a few blocks from a much smaller Ralphs in the shopping center on Irvine St. which includes another of my local favorites, Crown Ace Hardware. Crown Hardware actually began as a "mom and pop" hardware store in Corona del Mar, California, in 1949. Ace Hardware's mission is to have "the most helpful hardware stores on the planet!" and to provide every customer with the very best customer experience. And they absolutely do just that! The helpful people who work there always solve my problems.

OC Coastal Real Estate Trends

Orange County house prices rose faster in 2013 than in any year since 2004, the biggest jump in 9 years, CoreLogic recently reported. But price appreciation rates appear to have moderated somewhat. Rising prices attracted more sellers, which appears to have had a moderating effect on prices in 2014. The real estate market in OC’s coastal communities (Corona del Mar, Dana Point, Laguna Beach, Newport Beach, Newport Coast) seems to be cooling slightly, but prices generally have not yet begun to drop, although about 20-30% of properties for sale have had price decreases.

Laguna Beach

Over several weeks, inventory of homes for sale has been fluctuating, decreasing one week and increasing another. More quality homes seem to be coming on the market. Days on the market also appear to be fluctuating, increasing slightly one week and trending lower another. Prices have been moving higher as demand trends continue upward. Bottomline, home prices are at an all-time high and it looks like prices will continue upward. The median house size for properties on the market is 3,000 sq. ft., with 3-4 bedrooms.

Dana Point

The market appears to be cooling, but list prices have either held steady or moved slightly upward. Average days on the market has been increasing. The asking price per sq. ft. is roughly half of Laguna Beach. The median house size is about 2500 sq. ft.

Corona del Mar

Inventory is up and market conditions weakening in recent weeks. New supply continues to exceed demand and prices seem to be moving downward slightly. The asking price per sq. ft. has been holding steady, and is the same as Laguna Beach. Days on market is lower than both Laguna Beach and Newport Beach.

Newport Beach

Prices stay at all time highs even though the market seems to be cooling. Days on the market is increasing. The asking price per sq. ft. is somewhat less than Corona del Mar, Laguna Beach and Newport Coast.

Newport Coast

Market conditions have been cooling for several weeks. Supply continues to exceed demand. But prices have not dropped; on the contrary, median prices have been moving higher. The median house size remain at about 5000 sq. ft. with 5 bedrooms.

O.C. House Prices Show Biggest Jump in 9 Years

Orange County Register

February 4, 2014

Orange County house prices rose faster in 2013 than in any year since 2004, CoreLogic reported on Tuesday.

A new report from the Irvine-based real estate tracker shows single-family home prices jumped 19.7 percent during the 12 months through December.

That’s the highest year-ending appreciation rate for the county since December 2004, when CoreLogic recorded gains of 22.9 percent.

On the other hand, appreciation rates have moderated somewhat since this past year's peak of 23 percent annual gains in August, and they are forecast to drop back into the single digits this year.

“We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014,” CoreLogic chief economist Mark Fleming said.

Soaring demand and bidding wars drove up home prices last year. Low numbers of homes were offered for sale, while at the same time investors were buying heavily and renewed confidence in the market boosted home buying among owner-occupants.

CoreLogic bases its report on paired sales of single-family homes, comparing each home’s sale price to its previous sale price. The process is considered more reliable than other pricing methods since it is less influenced by last year’s big drop in foreclosures and short sales and rising sales of pricier homes.

Should I Move?

As everyone is aware, the real estate market has made a faster than expected turnaround. Reacting quickly if you wish to buy a property has become increasingly important. A few months ago it did not matter how fast you made real estate purchase decisions. Today making rapid and informed real estate purchase decisions matters a great deal.

Another discomforting surprise for many real estate buyers is that property prices are rising quickly and likewise mortgage loan rates. My advice is to carefully review all aspects of both your current and future real estate needs with someone you can trust and depend on for knowledgeable advice. Based on my many years of experience selling real estate in coastal and inland Orange County, I can suggest some areas for further research that for whatever reasons you may have overlooked.

1. It's important to anticipate future as well as current housing needs.

2. For people who suffer from knee problems and other kinds of disabling health issues, thinking about special requirements for their next home is a high priority.

3. It's also extremely important for homebuyers to think about their future needs as they get older and, as the region's population also ages, competition for one-story homes for sale is increasing. Single-family homes for sale already are becoming scarce. The first-floor of a two-story home usually doesn't compare favorably with the comforts and convenience of a single-story home. For example, many two-story homes have a downstairs bedroom that may be suitable for an office but too small for living space and probably doesn't have a bathroom large enough to meet your needs.

4. Most of my clients initially say that they are not sure that they will buy something. That's fine – that is quite normal. From experience I really don't expect people to know whether or when they will purchase a property. Most importantly, people need to learn enough about the real estate market and potential choices, without any pressure, to make the right decision at the right time. Helping people to make one of their most important decisions in life is why I love selling real estate.

Flood of Restrictions on Balboa Island Could Ease

With FEMA's acknowledgement of an error in the way it figured the base flood elevation, homeowners could see some relief.

Daily Pilot

January 17, 2014

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By Emily Foxhall

Getting the go-ahead for major construction on Balboa Island is no easy task, but homeowners may get some relief since a federal agency acknowledged an error in the way it calculated a key flooding threshold.

The recalculation could also ease insurance rates for those in the area, a flood plain.

Until now, any homeowners who wished to make improvements that cost more than 50% of the value of the home (excluding the property value) also needed to comply with a requirement that the home stand nine feet above sea level. In some cases, this has meant that homeowners would need to raise the house — a difficult and expensive task — or tear it down.

That minimum height, known as the base flood elevation, reflects the level to which water is expected to rise during a flood.

But the Federal Emergency Management Agency determined the nine-foot minimum using incorrect calculations, meaning the requirement should be eight feet, city staff said during a study session Tuesday.

In late 2003, FEMA concluded that the elevation in Newport Beach should be nine feet when the agency updated its maps to reflect a new calculation methodology.

Old tools held the measurement to be six feet. To convert it required adding 2.3 feet, yielding 8.3 feet.

When FEMA rounded this new calculation to the nearest whole number though, the agency pushed it to nine instead of to the nearer eight.

FEMA acknowledged that error in an email to the city Tuesday, said Seimone Jurjis, the chief building officer for the city.

"That's going to be a dramatic help to property owners in determining their flood insurance premiums," he said.

For example, a property owner who spoke at the study session would be able to follow through with his home improvements as planned because the top of his bottom floor is at an 8.39-foot elevation, which would be considered above — not below — the city's flood line.

FEMA will initiate the map revision, but city staff are still awaiting word on the timeline for an official change to the base flood elevation, Jurjis said.

Consultants for Newport Beach also collected data, rather than rely on the FEMA maps, to determine the elevation. They concluded the level should be 7.7 feet, which would also round to eight feet, information that will be shared with the agency, Jurjis said.

The adjustment also comes into play with upcoming changes in the way FEMA's National Flood Insurance program calculates flood insurance premiums.

Working with Buyers

Based on real estate trends in Orange County at the end of 2013 and beginning of 2014, there appears to be a worsening shortage of homes for sale. This fact plus rising 30-year fixed mortgage rates probably means stiffer competition for buyers, especially in sought-after neighborhoods. My job, therefore, will be to help buyers to construct competitive offers within their budgets and comfort zones.

For both buyers planning to get a mortgage or pay in cash, obtaining proper financial documentation is a critical step. If you’re planning to get a mortgage, you’ll need a pre-approval letter.

As a strategy for winning in the competition for quality homes in the most desirable neighborhoods, I stress the importance of pre-approval or proof of funds. Offering earnest money ,3% or more of the purchase price, also can be another strong competitive asset.

Being “pre-qualified” just isn’t sufficient because it doesn’t verify your income, assets and credit. If, on the other hand, you’re planning to pay in cash, be ready to submit proof of funds, which can be an original bank statement, open equity line of credit, copy of a money market account balance, or certified financial statement.

One of the main reasons that I decided to work with Berkshire Hathaway HomeServices is that it is a trusted full-service real estate company, handling everything from securing the best mortgage loan to finding reliable contractors. We can efficiently guide you through the entire pre-approval process and make sure that all of the paperwork and supporting documentation is done properly.

Open Houses

Over the years I’ve worked with countless sellers to set up and manage open houses, and to make sure that potential buyers hear about them and find them. Understandably complete strangers touring homes for sale can be a bit worrisome, not only for sellers but, frankly, even for agents. Part of my job is to make sure that your home and its belongings are secure during an open house, and that both home owners, and myself, have peace of mind as we host strangers.

Open houses normally are quite safe and uneventful. Even so, I encourage my clients to check with their insurance carrier to make sure that their policies cover damage and valuables. Thefts during open houses are very rare, but they do happen, typically cash, jewelry, and even office equipment. As an extra precaution, find a very safe place for credit cards, passports, financial documents with social security numbers, and extra keys. Put prescription drugs away in a safe place. On open house day, I’ll walk through your home with you for a security and safety checkup. When the open house is over, if you are available, we’ll close up the house together and make sure that windows and doors are locked.

You will want your house to be neat and tidy, organized, in good repair to look its very best.

The first and most important step will be to price your house properly. Pricing your property correctly for sale – the first time – is key for several reasons, one of which is that the first week of a real estate listing in the Berkshire Hathaway HomeServices website will generate the most traffic to your open house.

Hopefully we won’t have to go through this process too many times. I’ll do everything I can to get your house sold quickly -- but at the best price!

Finding the Right Home

You’ve read and listened to countless reports by economists, investors, online and traditional media that the nation’s economy and real estate market are on the mend, usually with the caveat that both are fragile and unpredictable. This kind of news and speculation about real estate and the economy understandably have kept many buyers on the sidelines.

I completely sympathize with both prospective buyers and sellers who are fixated on Washington in political disarray and seemingly perpetual crisis management mode. CNN, CNBC, Bloomberg and other television media seem determined to keep us all climbing the proverbial wall of worry.

Mortgage interest rate trends haven’t helped to remedy anxieties. On May 1, 2013, the average 30-year fixed mortgage rate was 3.52 percent. Since then we’ve had an increase in 30-year fixed mortgage rates to 4.56 percent (jumbos slightly higher). On January 29, 2014, the Fed reduced their bond purchases. If the Fed continues to pull back their bond purchases throughout 2014, which is expected, we probably will see a steady movement toward higher mortgage rates over the next several months. And then there’s the looming Congressional fight over the debt limit.

In my experience, home buyers frequently are unsure of themselves. The high level of uncertainty and poor visibility down the road in the global and domestic economy discussed above certainly doesn’t help. My advice to buyers always is -- “take your time.” And let’s spend our time together thinking through all of the what ifs and maybes that can pop up on almost every aspect of buying a house.

Even in the best of times, buying a house can be a scary proposition. Working together, we can think through both how you want to live and where you want to live, today and in the future. I can help chose both house and neighborhood and, in the process, help you to define what is negotiable and non-negotiable.