Real Estate in Orange County California:
Top 5 Keys To Location in The O.C.
Real estate in Orange County California is as universally appealing as any destination area in the world. But just as in any other region, an individual’s selection of location will be a very important personal choice in the fulfillment of their expectations. Because of this, we’ve assembled a list of keys for those looking to purchase a home for sale in Orange County that will be helpful in planning, searching, and eventually owning their own perfect piece of Orange County real estate
Key #1 Know The General Rules
If you haven’t already, you need to read our Orange County Real Estate Location Commandments to become familiar with our general rules of value. These rules are not hard and fast but by in large will dictate various levels of value for Orange County homes. For those looking to move somewhere other than the O.C., you are welcome to use our rules but remember that they can and will change with most local markets so please consult a local professional. In summary, here are the 7 Commandments of Location for real estate in Orange County:
Proximity to Water – The closer to the beach, the more valuable the real estate.
Views – The better the views, the more valuable the real estate.
Schools – The better the schools, the more valuable the real estate.
Commute/Transportation – The shorter the commute, the more valuable the real estate.
Hospitals – The closer to hospitals, the more valuable the real estate.
Commerce – The better the local economy, the more valuable the real estate.
Buzz – The trendier the area, the more valuable the real estate.
Key #2 Know The General Areas
In order to research any area, you’ll first need to know the geographic lay of the land. For your convenience, we’ve arranged Orange County real estate into five separate areas and included links to articles outlining the highlights of each respective area.
North Orange County – Roughly speaking, this exciting portion of Orange County is often underrated given the vast amount of opportunities available. For an extended look at this area, please see our North Orange County Real Estate report for more information about some of the O.C.’s best real estate.
Central Orange County – This is the nucleus of real estate in Orange County for many reasons including commerce, freeway access, and entertainment. For a closer look at Central County, see our quick guide to Central Orange County Real Estate for an area synopsis.
West Orange County–The western corridor of O.C real estate is about the closest one can get to Los Angeles County. Much of West Orange County is in very close proximity to water and provides a great alternative to South County coastal property. Learn more about West Orange County Real Estate by using our complimentary home buyer report.
East County – The eastern edge of Orange County probably has more hillside view property than any other part of the O.C. See what else makes this area unique at the East Orange County Real Estate home page.
SouthCounty- Probably the most photographed and filmed section of Orange County. This is the coastal portion of the county that most of the famous O.C. television shows are based upon. See what else South Orange County Real Estate has to offer with our area profile page.
Key #3 Learn Some Specifics
Mello Roos – This funny sounding word is really the term for a unique type of tax. After passing Proposition 13 in 1978, Californians were given much greater protection from property tax increases. Mello Roos is the reaction to this by communities and developers as they needed a new way to finance infrastructure such as sewers, streets, schools, libraries, and parks within the new communities. For Orange County homes, Mello Roos is much more common in South County than any other part of the area as much of this is newer construction. But before you write off Mello Roos property, realize that many times Mello Roos is not permanent and property owners will be receiving a relatively new infrastructure system. Find out more details on this at Orange County Mello Roos Homes – Shedding Light On Orange County Real Estates Mysterious Tax
HOA – A Home Owners Association (HOA) is a local governing entity responsible for enforcing rules and maintaining a specific piece or group of properties. For Orange County real estate, they are most common in condominium complexes but are not uncommon in many newer housing tracts. Dues range from $50 to $400 per month for communities with more extensive landscaping, utilities, and community resources. Often, the total cost of these dues is less than it would cost the homeowner to buy maintenance or utilities on their own. Lastly, HOA’s usually enforce maintenance of certain “look” of neighborhood homes which some will view as too restrictive while others see it as a community enhancement. Learn more about this at Orange County Home Owners Associations- Are HOA’s Right for you?
Streets, Freeways, Airports, Trains – One of the major benefits of real estate in Orange County is the amount of access available to various avenues of transportation. The downside is that some people will have live near these noise disturbances. The basic rule is that the closer one’s home is to one of these transportation medians, the less it will be worth. Basically, quiet neighborhoods sell for top dollar but that doesn’t necessarily mean they are mandatory for everybody. Sometimes, people with hearing disabilities will take advantage of the relatively inexpensive price of a house very close to a noisy freeway and be completely happy with it. Because people all have different levels of sensitivity and tolerance, we aren’t going to tell you just how far your house should be from the major street. All we are recommending is that people take the time to research these types of disturbances and decide for themselves what they can live with and what would become a major problem. A good place to start your research would be our article Orange County California Real Estate – 6 Steps To Finding A Quiet Neighborhood.
Hillsides – Thinking back on the 7 commandments of location, recall property views and how they positively impact the value of Orange County homes for sale. The other side of this coin is that these same view properties often carry a greater risk for hill slides and slippage. Having worked real estate in Orange County California for years, we are aware of many areas that carry both high and low slippage dangers. But being that we are far from experts in the field of geological hazards, we always recommend homebuyers seek a professional opinion from home inspectors, structural engineers, and/or geological technicians. While these professionals are not inexpensive, we think that they are absolutely mandatory if there is any concern with regard to the property moving or slipping.
Neighborhood Age and Architectures - Some like new, some like old, some need unique, and other people just want simple. Whatever you like, O.C real estate probably has a more than a few houses that fit your idea of what a home should look like. The houses built around the turn of the century all the way to 1930 usually fall into one of the various categories of California Bungalow and have a unique set of features and architecture all their own. Contrast these styles with the larger scale of post 2000 construction, or the spacious lots of a mid-century ranch home and you’ll see why we say there are many options. Certain areas of Orange County are known for certain architectures so we suggest that consumers find a few styles that will work with their budget and add this to their mix of criteria. For a quick look at the differences, our article Orange County Real Estate – 10 Popular Home Styles in Orange County will be a great start towards finding what your heart desires.
Key #4 Use The Local Knowledge
For Orange County homebuyers, this fourth key is probably one of the most important but under utilized of them all. The best place to find this local knowledge is through your Realtor or even local neighbors. Remember that your real estate agent can’t, or at least shouldn’t, guarantee any of this information because it is not controlled by them. They should, however, be able to point you in the right direction so that you can verify it on your own. While not a substitute for due diligence, these real estate agent “insider tips” will give homebuyers a general idea of what they might expect.
Nuances and Quirks – As you probably already know, each Orange County neighborhood is different and has its own little unique set of quirks. They can range from the way the sun hits the house in the morning to the way the afternoon breeze blows across the lot. Sometimes a coastal neighborhood smells of fresh ocean breeze while at other times the same neighborhood reeks of natural sulfur gas during the low tidal swings of the nearby harbor. Each of these can be a plus or a minus depending on one’s taste. The best way to find them out is to spend some time in the neighborhood or at the home during different times of day. In addition to shedding some light on known quirks, your Realtor should be able to schedule you some time at the house for the discovery of more.
Builder Pro’s and Con’s – Everybody knows the story about the three little pigs and how a well built house is an important issue. We have countless national and local builders in Southern California and the quality of construction ranges from marginal to impeccable. While we can’t throw out blanket recommendations for specific builders since quality often varies even among the same builder, what real estate agents can do is consult their clients on previous experiences they’ve had selling similar homes in the neighborhood. Of course, this is not a substitute for the fact that every homebuyer should have an inspection contingency in place when making any offer to purchase and then review the report from their licensed home inspector prior to releasing these contingencies.
Neighborhood Disturbances – Where do we even start here! Basically, anything can and will become a nuisance to somebody at sometime. The more common are noise from area business’s, trains, and major streets. The more bizarre range from promiscuous neighborhood cats to errant golf balls! Realtors and homeowners do have a duty to disclose those they are aware of but a nuisance is subjective by nature so please be advised.
Natural Hazards – In Orange County California, we are lucky to have access to entire companies whose sole job is to outline and rate areas according to natural hazard risks from fire, flood, earthquake, and others. Homebuyers should also receive and review a natural hazard disclosure prior to releasing inspection contingencies. While Realtors can’t tell you whether a particular item is “not to be worried about” an experienced one can help to put it in perspective with the surrounding area. For example, liquifaction is a term used to describe soil and its affect on the shaking of the ground during an earthquake. This condition is prevalent in almost every part of Orange County. We’re not telling you that liquifaction is not a danger, we’re just saying that if you want to own real estate in orange county, you’ll probably have to deal with it.
Non-Owner Occupied – This is a term used to describe a property that is being leased or rented to somebody other than the owner, otherwise known as a “rental house.” Some neighborhoods have a large amount of rental property while others have very few. In general terms, the more upscale neighborhoods will have fewer rental properties than lower income neighborhoods. Many lenders require a certain ratio of owner occupied to non-owner occupied property (more owners than not) before they will lend on them, but don’t automatically assume that a neighborhood with a high amount of rentals is going to be a “bad” neighborhood. As you’ll see below, much of the Orange County California real estate with high saturations of rental properties are actually some with the most potential.
Neighborhood Trend – Perhaps the most speculated upon and weighted detail is the trend of the neighborhood. The trends can be labeled as established, up-and-coming, or on a downturn. Obviously, you’d like to be one of the first two and avoid the last scenario altogether. There are many reasons for a downturn and your warning signs will be neighbors neglecting more maintenance than usual, an increased number of “For Rent” signs, zoning changes, or the closing of a large local employer. Upward trends are ideal and can be caused by an increase in local jobs, a successful revitalization project, a change in zoning, or anything else that would make an area more desirable than it was before. One of your best sources for opinions of local neighborhood trends will be an active real estate agent as they will see the demand on a first-hand basis. You can find some Orange County Redevelopment Areas in our article about these interesting social projects.
Key # 5 Know You’re Goals And Your Risk Tolerance
We often find people have an internal conflict with regards to their real estate goals. We think it is important to distinguish between buying a home and buying an investment as the two should be approached in completely different manners. A home is a place where you’ll raise your children, celebrate the holidays, and entertain your friends. An investment is only about the money it will generate. It is absolutely necessary for the consumer to be clear on which they are looking for and then set an appropriate goal. If they find that their primary motivation is to find a home, clarifying this does not mean their Realtor will exclude the “good deals.”
The reason for the mandatory clarification is that one will often find that good investment property may not make a good home and vice versa. A quick example would be a house siding a busy street. Many homebuyers would never consider buying such a property because of the noise disturbance. The same property may be attractive to an investor because not only can they purchase it for a discounted price but that same busy street will provide a lot of high visibility advertising to potential tenants when he puts out the “For Rent” signs. In addition, the investor will find that tenants are generally less fussy about noise since their stay is only temporary.
Once you’ve decided on looking for either an Orange County home or investment, you need to think about your own risk tolerance. Are you generally cautious, a risk taker, or somewhere in the middle? If you are a risk taker, how do you feel about taking risks with your family or the family’s money? The reason you’ll need honest answers to these questions is that purchasing a property in a speculative up and coming neighborhood is inherently riskier than purchasing one in an established neighborhood. The flip side is that the up and coming will have greater upside potential. Look deep inside yourself and decide which value you hold dearest: security or opportunity?
Ready For The Next Step?
Once you’ve decided, or even if you haven’t, you owe it to yourself to visit our Orange County California Real Estate page for more information about the O.C. If you’re ready to start looking at available homes, please see our Orange County Homes for Sale page for the best tools on the web for finding, buying, or just tracking real estate in Orange County.
About the Author:
Todd Foust is the chief marketing executive for the FOUST Team at C21 Discovery; one of the top-selling real estate teams in Southern California. He specializes in Orange and Los Angeles Counties and operates one of the area’s most informative real estate websites. To contact him or learn more about Orange County real estate, please visit www.FOUSTonline.com.
Home > Library > Geographic Location > Top 5 Keys To Location in The O.C.
