Orange County Real Estate:
California’s 7 Commandments for Real Estate in the O.C.
The first thing one must recognize when thinking about purchasing some Orange County California real estate is that there are 7 general rules or commandments to follow. These rules are not hard and fast but by in large will dictate the value of homes for sale in Orange County. You may also find that many of these rules apply outside the O.C. as well. For those looking for something other than real estate in Orange County, 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. Here are the 7 general rules along with a brief description of our rating system:
Commandment #1 - Proximity to Water
By water, we are mainly talking about the beach, ocean, or harbor. Generally, the closer the Orange County real estate is to one of these bodies of water, thent more valuable the property will be. Proximity to water is definitely a luxury item but one that people are willing to pay a premium to obtain.
During the summer, when the inland areas start really heating up, is when the draw of the water is at its prime. Not only is the cooler coastal climate ideal for many people, but there’s just something about being “at the beach” that’s soothing to the soul.
Surfing, boating, sailing, sport fishing, jet skiing, jogging, volleyball, dining, and sightseeing are all activities that may be best around the coast. Because of these attractions, many people yearn to make “beach living” a part of their lifestyle.
Not only does value of this coastal real estate become more valuable the closer it becomes to the water, it does so at an exponential rate. In other words, beach-front Orange County home is likely to be more than “just a little” more expensive than real estate one mile or even one block inland.
Commandment #2 - Views
Views range in type and degree so much that often they are the most difficult part of real estate to value. It seems that many views are priceless and it is evidenced by the fact that homebuyers are willing to pay top dollar for a view that is unique and exciting. We have a saying that sums it up well, “You can almost always change the countertops, but you can almost never change the view.”
This above quote is intended to mean change for the better. A view changing for the worse is something that can and does happen frequently. If you find an Orange County home for sale with a view that you love, you’ll need to consider the likelihood of it changing over time. How likely is it that the view of the open area that you fell in love with could change into a view of a new tract of O.C. homes ten years down the road?
As far as type of views, the most highly desired would be an unobstructed ocean view and one of the least desirable would be of an unsightly commercial building view. There are types in between such as mountain, hillside, or city lights views. For degree of view, they can range from peek-a-boo (limited) to 360 degree panoramic (unlimited). Orange County homes with the latter view will be more desirable than those with the former. Generally speaking, the more spectacular the view the more valuable the real estate will be.
Commandment # 3 - Schools
Whether you have children of school age or not, your Orange County real estate will be affected by the local schools. A great school district is one of the top things parents look for when planning a move. School districts that have numerous nationally recognized schools will be in high demand and therefore give greater value to the real estate that feeds them.
Schooling carries such a heavy weight among parents that there are some extremely popular sites that specialize in rating elementary, middle, and high schools. While the importance of education is pretty much a universally accepted concept, that’s not to say that a non-distinguished school will necessarily produce a sub par education for your children. Like anything, a school is worth only what one makes of it and even Orange County’s less desirable schools continuously produce outstanding students.
Commandment #4 - Commute and Transportation
Most people work, and none of those that do, enjoy long commutes. Because of this, access to public or private transportation is a key value factor for O.C real estate. Part of this pertains to ease of access to multiple freeways, major streets, bus stops, or train stations. The other part is the actual commute along the available transportation routes. Location is a funny thing and sometimes the novelty of a secluded neighborhood becomes overshadowed by the excessive length of time it takes to get anywhere. Southern California relies heavily upon a system of freeways to get commuters not only to work, but also to navigate the urban sprawl of the area. Long slow drives along city streets in order to find one of these freeways can make an area less desirable as far as real estate values are concerned. Once on the major transportation artery, the length of time to get to work is a key factor. This will vary relative to location, destination, and direction of travel. The general rule is the quicker you can get to multiple major areas of commerce, the more valuable the Orange County real estate will be.
As a side note, another option worth considering with the increased cost of fuel is an areas proximity to transportation hubs like train stations and bus stops. Many O.C. commuters are leaving the daily freeway grind in favor of these relatively economical and reliable transportation services.
Commandment #5 - Hospitals
Orange County does have a large aging population and one of the primary concerns for them is proximity to the doctor. As such, real estate in Orange County that surrounds the successful medical institutions has seen an incredible rise in value.
In addition to hospitals, large-scale medical centers have made a significant presence in Orange County providing a convenient centralized location for the people they serve. With the aging of the baby boomer generation, we expect to see increased demand for years to come.
In addition to the increased demand from the public, the doctors and staff that make up the hospitals are adding to the demand themselves because they are also usually interested in residing within close proximity to their work. With the growth of these medical centers, we also expect the surrounding real estate to see an additional increase in demand from hospital staff.
Commandment #6 - Commerce
No matter how inexpensive the real estate is, an area without jobs is destined to depreciate. Thankfully, Orange County has a great overall economy and many of its cities have their own local dynamics.
A diverse grouping of industries and professions will give an area some protection against economic calamity. When an area is too reliant upon a single industry, or heaven forbid a single company, one economic shift can turn a thriving area into a ghost town.
The local economy of a city has added benefits as well. Employment opportunities within your city add flexibility and can alleviate much of the stress involved in commuting. While secondary to an areas overall economic health, the strong possibility of local employers is giving real estate in Orange County’s cities an added economic boost.
Commandment #7 - Buzz
Whether from savvy publicity or mere luck, some areas are just trendier than others. One will find that areas that are in style will have real estate that sells at a premium.
Some people don’t care whether they live in a destination city or not. They just want a nice area that they can call home, even if it is well removed from the outskirts of the “in crowd.” Others need to be where the action is; and are willing to pay the price to be there.
Regardless of where they fall, people will need to decide how important this is to their lifestyle. Another thing to take into consideration is whether you would still enjoy the area if it somehow fell out of vogue. Buzz can be the most fickle and speculative of all the 7 general rules; but then again, it probably offers the most in the way of opportunity as well.
Ready for the Next Step?
These commandments should serve you well as a starting point for learning more about Orange County Real Estate. If you’re ready for more, see our Orange County California Real Estate article that highlights the other top keys to location. If you’ve 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.
