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Orange County Real Estate

Clancy Fort's Blog

Sometimes you just need to write it down from real estate, politics to family life.
Feb 08

How Can California State Government Mess With It's Economy More!

Clancy Fort Posted by: Clancy Fort in MyBlog | Comment (0)

As a sales person, I'm not supposed to define my political affiliation for fear of scaring off folks that may not believe in the same things that I do. So, I'm about to commit a cardinal sales mistake. I hope you all that know and love me don't hold this against me.

I have been a Californian for most of my life and for the most part didn't really care what the our great state's government did or does, however I am now angry enough to speak out against some of the pure stupidity I continue to see.

I truly believe that the less our government intrudes into my life the better. So, you could describe me as a conservative libertarian with republican leanings. With that said, I have reason to believe that our current state government has now gotten to the stage where it is unwieldy and acting for it's own preservation rather than for my or anyone's best interests.

It's time for a lot of reform.

California is currently ranked 47th out of 50 for states that are friendly to business. Every year our legislature comes up with new diabolical plans to make doing business in this great state more difficult and more costly.

There is California Workers Compensation and Disability (CWCD). Every year our friendly legislature ads more fees and requirements to this program making it even more expensive to hire employees. Ever wonder why most of California's manufacturing jobs are moving to other states? Well, this is one of the reasons. I'm not irritated that California has this. It's a good thing. I just ask that the legislature weighs the effects of what is currently required and how much they charge against what will be lost. Maybe if they asked the employers how these requirements and fees will affect them, they would have a better idea of how many jobs would be lost.

Of course, there is my favorite stupidity, the California Global Warming Solutions Act of 2006. I'm all for a clean environment. I did grow up in Los Angeles with those hot August days where the mountains were clouded in a brown cloud of smog. But think about it. How is California going to clean up it's act if no one else is? I don't see any other state doing this? Why? Because it's an economy killer. 

We as a society rely on hydocarbons as our primary fuel source which mean we produce CO2 in mass quantities.  It looks like we will be doing this for sometime to come. Wouldn't it be better for us to look for solutions to get us off hydocarbon energy? We are California where the computer was incubated among other inventive technologies.

So, answer me this? Why is the California Air Resources Board (CARB) doing everything in it's power to make it even more difficult for us to do business here. When I talk to my friends in the already decimated construction industry, they tell me that they are now considering taking their trucks and moving to another state or closing all together. They can't afford to do business here anymore. Those that are still in business are laying off workers or putting their employees on part time so they can afford to make the costly modifications to their heavy equipment to meet CARB's standards. 

Large manufacturing operations are also looking at the cost to adhere to what CARB is requiring and adding into it what is required for the CWCD and deciding that it's cheaper to pack it in and move to another state.

I don't know what you think about all of this but to me this means that our state government has made it TOO expensive to do business here. In a state that has around 20% of it's population under employed. This all sounds pretty moronic to me.

I think our legislature has way too much time on its hands. As they say, idle hands are the devil's tools. In order to make it look like they are doing something, they are making laws that sound good but are totally impractical. 

I am all for a part time legislature. Maybe if we cut their hours in half, they will be concentrating on what is really good for the state rather than what sounds good for reelection. 

 

 

Aug 13

Are We There Yet?

Clancy Fort Posted by: Clancy Fort in MyBlog | Comment (0)

There it is, the big question. The one every kid yells from the back seat of the car, "Are we there yet?" Funny thing...this is the exact questions my clients are asking me today as we go out looking for a home to buy. Here is the answer you have all been waiting for...wait for it...wait for it....I don't know and anyone that tells you they do is full of (How did my son put it? Oh Yeah!) POOPIE.

The market is extremely volatile right now and  depending on the neighborhood you are looking in you could see price stability, price falling and in some cases price overbidding.

All of my clients keep asking the same question, "Is this the right time to buy?" "An emphatic, YES!" is my answer. Look at the facts, overall prices are lower than they have been for a long time. We may or may not have hit the bottom but if your planning on holding your property for more than 5 years. THIS IS A GREAT TIME TO GET BUY REAL ESTATE. 

The only issue you face is how to finance it. The banks are still very stingy with their money, so your going to need at least 10% down and a decent FICO score.

 

May 07

Toxic Mold and Real Estate: What does it mean to you?

Clancy Fort Posted by: Clancy Fort in MyBlog | Comment (1)
Tagged in: mold removal

As a former Californian living in Colorado, I was surprised to hear someone complaining of a toxic mold problem.  Here?  In dry Colorado?  Though we usually think of this as a coastal phenomenon, you may be surprised to know you have company in dealing with it. 

Mold spores can be found anywhere

They float through the air, enter homes through doors and windows, and even hitch a ride on your pets.  In most cases, these molds are harmless and can even be beneficial to the environment.  It is when your home or piece of real estate begins to grow toxic mold that the real problem begins. 

Mold and Water Damage
Problems with toxic mold rarely occur in homes unless there has been flooding, whether from rising water, leaking roofs, or plumbing problems.  This is just as true here in Colorado as it is close to the coast.  When mold spores anchor to moist, damp surfaces they find a perfect environment to replicate and spread.  If the water damaged areas are not fully dried within 24 hours, there is a potential for mold damage to occur.

Health Risks
A home containing mold can be very detrimental to the health of everyone that lives in the home.  Some individuals are more sensitive than others and can exhibit symptoms of allergic reaction very quickly after exposure to mold in the home.  The most common health problems associated with mold exposure include difficulty breathing, eye irritations, and skin irritations.  Some individuals may experience a severe reaction that could be life-threatening if not treated promptly. 

Where Does Mold Grow?
Toxic mold tends to grow in places that are dark, damp, and poorly ventilated.  To get rid of a mold problem, the source of the moisture must be eliminated.  This is difficult in many situations and usually requires the assistance of a professional inspector.  Any absorbent materials that begin to grow mold must be disposed of quickly to prevent the mold from spreading further. 

Cost of Mold Removal
If the area growing the mold is more than 2 feet in diameter, the services of a professional mold remover should be obtained to ensure that the mold is removed from the home safely and completely.  This can cost anywhere from $10,000 to $50,000 for a medium sized home.

Mold and Real Estate Transactions
Toxic mold can cause a real estate transaction to fall through or cause the homeowner to become enmeshed in litigation.  Any mold problems should either be corrected before attempting the sale of the home or disclosed prior to the completion of the sale.  There have been a number of lawsuits in recent years regarding the development of illnesses after exposure to toxic mold. Judgments in these cases have resulted in more stringent standards and the creation of an entire industry dedicated to inspecting homes for mold growth.

— Contributing author Joel McDonald is the owner of Automated Homefinder, a Denver real estate company.

May 07

Beware of the press for they are the teller of bad news!

Clancy Fort Posted by: Clancy Fort in MyBlog | Comment (0)
Tagged in: Bad press

I thought I would chime in on how much I love the press. They make my phone ring. Not in a good or bad way…just in an interesting way.

A client emailed me an article today about how foreclosures are up in the US. For reference, here’s a link to the article. http://articles.news.aol.com/business/_a/december-sees-spike-in-foreclosure/20070117144109990001?ncid=NWS00010000000001 . He like everyone else is looking for a great deal on his next house and was wondering why, out of all the properties I’ve shown, none of them are in trouble.

So, we had to have a little talk about the news and how they make money. I’ll make it simple…GOOD NEWS DOESN’T GET RATINGS OR SELL NEWSPAPERS! They are primed to tell you that the world is coming to an end as you know it because that’s what we want to see and hear. We listen to what they have to say to get more information and as we do that they feed us a continuous stream of ads and make money.

What a fabulous business…take good news, give it a coloring of gloom, sell a few ads around it and presto, you’re a Fortune 500 company. Pretty cool, huh!

So, what does this have to do with real estate? Lots…news influences the consumers decision making process. Depending on how they process the news, some folks are liable to make some really bad choices.

Because I work in Orange County, California which has had one of the highest appreciation rates in the US, I have more than one horror story to tell.

About three years ago when the market was really moving, a few folks were taking the market forecasts in the Orange County Register a little too seriously. By this time home prices were moving at around a 30% / year appreciation rate. The paper continue to report the really great news that everyone was getting rich while in the same paragraph quoting the local gloom and doom economists who had predicted incorrectly for the previous 4 years what the market was going to do. The prediction was that next year it was all going to come crashing down around us. It didn’t. In fact the rapid appreciation pace continued for another 2 years.

A few of these nice folks read this continuous stream of tainted good news and make a decision and learned a terrible lesson the hard way. They sold their house two years ago thinking it was to top of the market. That’s what the news kept saying. They have been waiting for two years for the market to turn. Now, they are reading that the market has definiately turned and they are ready to take all their winnings from their last home and buy and even better one.

There is one little problem in this logic. The market has passed them by. Their old house they sold for $1,000,000 is now on the market for $1,500,000. They can’t afford a home even remotely comparable to the one they sold. They lost $500,000 playing this market game.

Now, for the article above. There are some statistics missing from it. The big one is how many homes were sold over the last year. According to the Orange County Multiple listing service over 29,000 homes changed hands last year. This number doesn’t include the new homes. If Colorado as a state had the same number of homes transfer, that’s 0.11% of the inventory is a foreclosure property. Let’s assume that the entire state of Colorado sold more that Orange County. They are a state and we are a county. That’s an even smaller percentage of the inventory. This is a really small number. But according to the article, it looks like a really big one.

So, what does this mean…we are in a normal market where some areas are moving up and some down. There is lots of inventory to choose from and out of that inventory, there are a few who will give you a really great deal.

May 07

You mean loaning money to people with Bad Credit was a bad idea?

Clancy Fort Posted by: Clancy Fort in MyBlog | Comment (0)
Tagged in: Bad Credit

With all of the news about the sub-prime lenders going out of business and of course our deal friends in the media telling us that the world is going to end again, my clients are as confused as ever. So, here’s the deal from the field.

  1. Foreclosures and short-sales are up, but at least in my area of
    South Orange County, we’re talking 1 in 50 properties. There are some deals to be had. You just have to find them.

     

  2. Finding the right home to live in and get it in a short sale or foreclose are mutually exclusive from my experience. Most of the homes in trouble need repair and some loving care which is why they are cheaper than the rest of the homes on the market. Unless you can look beyond the dirt and the repair job, it is difficult to see it as a place to live.

     

  3. The market is static. Prices aren’t going up and they aren’t going down. Seller are averaging around 97% of their asking price and they have the equity and the time to get it. This doesn’t apply to the 1 in 50 mentioned above.

     

  4. Foreclosures do not affect the value of a neighborhood unless more than one happen in that neighborhood in the same year. An appraiser will look at an REO sale as an anomaly.

     

Well that’s it for now. I’m not writing poetically this evening.

May 07

Is Cox Cable Eating the email you send?

Clancy Fort Posted by: Clancy Fort in MyBlog | Comment (3)
Tagged in: Help

It’s not often that I complain about something. I’m afraid I’m not really the activist type, but this one really has my undies in a bunch.

I live in Ladera Ranch which has a master contract with Cox Cable to provide Internet access to the entire community, a very cool idea except the contract is with Cox Cable. A portion of my HOA dues pays Cox every month. This is a master contract covering over 3000 homes. I’m sure Cox is giving us a great discount hoping that we will buy their phone and cable TV services as well.

All was well until about three months ago when the “geniuses” at Cox decided that they should fight spam by eating our outgoing emails. Now, I understand intercepting spam coming to me. However, intercepting emails to my clients and friends? Come on…give me a break.

At least they now give you notice that they are not delivering your mail. In Outlook it’s a nice box that comes up to tell you that the email has been blocked. For three months, I still have no idea what emails were actually sent and what wasn’t.

I spent a half a day trying to get the bottom of this through Cox’s technical support group which had no idea what I was talking about until I finally got a level 2 support guy on the phone. He confirmed that “Yes, Cox had a new spam filter on outgoing email. Further, if I wanted to get rid of it I could buy a business account from them which does not have the outgoing spam service.”

Of course, when I complained to the HOA they had no idea what was going on. They were nice enough to tell me that they would talk to the account rep. Nothing happened.

In conclusion, if you are in South Orange County and are using Cox as you Internet service provider. I would recommend two courses of action.

1. Call techical support. Ask for a level two agent. They will tell you that you can’t talk to them. Push really hard. Cox’s level one support would have trouble setting up Outlook Express. They are reading a list of instructions from their screen. When you don’t get satisfaction from level two, ask for the supervisor. I figure that if enough of us call. They are spending support dollars and it may dawn on them what a bad business decision this is.

2. Call sales and talk to them about canceling you service.

Money talks usually…however since Cox is a monopoly in South Orange County they may not care.

The good news is there are lots of other service providers that don’t spam filter your sent mail.

Please feel free to comment…

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